http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news.aspx 60 en-us http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/some-retirees-fail-to-correct-financial-shortfalls-800766378.aspx Concerns over the economy, stock market, employment, and rising living costs have heightened many Americans' fears over whether they have amassed sufficient retirement savings. In addition, while some may speculate that greater concern may prompt adults to focus more on their retirement planning strategies, the results of a new study show that the opposite is true.

According to the 2011 Risks and Retirement Survey conducted by the Society of Actuaries*, retirement risk strategies have remained unchanged over the last two years, even as consumers' stress over retirement resources has increased. The surveyed took responses from both pre-retirees and retirees, and noted that each group had retirement concerns in several different financial areas.

The results show that 69 percent of retirees are worried about keeping their investments and savings on pace with inflation, while 77 percent of pre-retirees gave the same response. The ability to pay for healthcare is another significant factor weighing on Americans' minds with 61 percent of retirees and 74 percent of pre-retirees listing this as their major concern. The third highest concern was the cost of long-term care insurance. Sixty percent of retirees addressed this as a major concern, along with 66 percent of pre-retirees.

Both groups also listed other worrisome factors, such as their ability to maintain their standard of living through the duration of their retirements, experiencing varying income levels as interest rates fluctuate, and depleting their savings accounts. However, experts find it curious that although Americans tend to be more concerned about how to finance their golden years, many have not used time-tested strategies to map out a financial plan.

"Notwithstanding this increased concern, retirees and pre-retirees are no more likely than in previous years to report they have used the various risk-management strategies examined in the survey," said actuary and retirement expert Carol Bogosian. "However, retirees are more likely than in 2009 to report they have cut back on spending, saved as much money as they can, and purchased a product or chosen an employer plan option that provides them with guaranteed income for life."

Limited retirement planning

The study's analysts say that one of the primary reasons pre-retirees and retirees may feel ill equipped to financially manage their golden years is because they do not plan far enough ahead to cover the rising life expectancy rates. In many cases, some pre-retirees feel that they do not need to engage in significant retirement planning because they believe they will never be in the financial position to quit working and retire.

"The survey results continue to show the importance of earlier and better planning as well as a more systematic approach to managing all aspects of retirement risk," said retirement expert and actuary Anna Rappaport.

*according to the Society of Actuaries on March 29, 2012. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/some-retirees-fail-to-correct-financial-shortfalls-800766378.aspx Tue, 01 May 2012 17:33:52 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/weak-economy-debt-cause-retirement-confidence-to-fall-according-to-study-800766363.aspx The recession weighed heavy on many Americans' retirement savings, and a lack of improvement in the labor market has made planning more difficult for some adults. In addition, millions of individuals were forced to rely on credit and loans to meet their living needs, leaving some with significant credit card debt and limited savings. These factors, coupled with a weak economy, have resulted in a bleak retirement outlook for many soon-to-be retirees, according to a new study.

The 2012 Retirement Confidence Survey conducted by the Employee Benefit Research Institute* reveals that optimism has fallen to historically low levels as many adults face job insecurity and heavy debt levels. Only 14 percent of study participants reported being confident in their abilities to retire comfortably. Job insecurity was the top-cited factor in low retirement confidence, which fell to the lowest level seen in two decades. Forty-two percent of adults report job insecurity as the most important factor facing today's workers. Job insecurity was only one piece of the puzzle, however, and many participants cited a lack of sufficient retirement savings as another reason.

Insufficient savings

The results of the study show 81 percent of eligible workers—which translates into 38 percent of all workers—participate in an employer-sponsored retirement program, such as a 401(k) or individual retirement account. However, this savings vehicle is one of the only forms of retirement savings many workers have to rely on, with many saying they have no personal savings or investment accounts to help them generate more income in the future. However, those who did contribute to an employer-sponsored retirement program were also twice as likely to report having a savings or investment portfolio of at least $50,000 as those who do not contribute to employer-sponsored plans, the results showed.

In addition, those who reported contributing to an employer plan were also more confident in their retirement readiness than those who do not. Sixty-four percent of workers who contribute to retirement plans say they are somewhat or very confident in their ability to live comfortably during their golden years, while only 48 percent of adults who do not participate in a plan gave the same response.

Many pre-retirees say they are planning on working longer and delaying retirement to save more income. However, a sizable number of study participants reported being forced to leave their jobs earlier than they planned, creating anxiety over their retirement savings.

"Nearly half of current retirees surveyed by the RCS report they left the workforce earlier than they planned for reasons beyond their control, such as health or economic forces such as a job loss," said Mathew Greenwald of Greenwald and Associates, who co-sponsored the survey.

*according to the Employee Benefit Research Institute on March 13, 2012. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/weak-economy-debt-cause-retirement-confidence-to-fall-according-to-study-800766363.aspx Tue, 01 May 2012 17:29:23 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/teen-confidence-in-future-plummets-says-study-800766334.aspx Millions of retirees, middle-aged adults and recent college graduates are working to overcome the negative effects of the economy and create a sound financial profile. However, the ramifications of the economic downturn have not been lost on teenagers, and many fear that they may never accomplish financial independence if market conditions do not improve.

The results of a new joint study conducted by Junior Achievement USA and the Allstate Foundation* reveal the number of teens between 14 and 18 who think they will be as financially well-off or better than their parents fell from 89 percent in 2011 to 56 percent this year. In addition, only 18 percent of teens who responded believed they would reach financial independence by age 20, as opposed to 44 percent in 2011. However, teens were more optimistic about reaching financial independence in the future. Those who believe they will be financially independent between ages 25 and 27 increased from 12 percent in 2011 to 23 percent in 2012.

"Despite recent reports that this will be the first generation in a century that is unlikely to end up better off financially than its parents, our young people have the opportunity to shape their own futures, as long as they have the skills, knowledge and confidence to do so," said Junior Achievement USA CEO and president Jack Kosakowski.

Teens still have some financial work to do

While teens believe they will be in a better position by their mid-20s, the study also revealed that many do not utilize financial management strategies to help them save money and curb debt. For example, the number of teens who said they do not use a budget to manage their money increased from 10 percent in 2011 to 34 percent in 2012. A lack of financial education may be part of the reason teens do not adopt money management tools, with only 24 percent reporting they learned about financial literacy topics in school.

"Every parent's dream is for their children to be more successful than they are. So, Junior Achievement, with the collaboration of key partners like The Allstate Foundation, will continue to expand young people's access to the tools they need to succeed in the global economy, including critical money-management skills," said Kosakowski

In addition, teens say that the recession prompted their parents to save less money. However, the study shows that many teens are mirroring this behavior. The number of teens who planned to save some of their income dropped from 89 percent in 2011 to 56 percent this year.

However, more banks and financial service companies are developing new financial literacy programs to teach young adults basic money management skills and tactics. These educational programs may be especially beneficial as young adults begin preparing for college and seek out other sources of funding to avoid student loans.

*According to Junior Achievement USA and the Allstate Foundation on April 11, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/teen-confidence-in-future-plummets-says-study-800766334.aspx Tue, 01 May 2012 17:18:04 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-young-investors-may-misconstrue-benefits-of-traditional-and-roth-iras-800765633.aspx While investors are largely clear about some of the tax benefits that come with Individual Retirement Accounts, a new study suggests that they may be confused about the differences between traditional and Roth IRAs.

According to the analysis, which was conducted by investment firm T. Rowe Price*, 70 percent of the nearly 900 adults between the ages of 21 and 50 polled indicated they were "familiar" or "very familiar" with IRAs. In addition, nearly nine in 10 respondents noted they have made personal contributions to their IRAs.

In addition, a strong percentage of respondents—nearly 50 percent—were correctly able to identify the aspects of IRAs that have tax advantages, such as tax-deferred earnings and tax-free withdrawals.

Roth IRA benefits differ from traditional

However, what many weren't clear about was with regards to when they could withdraw from their IRAs without paying a fee. For example, roughly 21 percent incorrectly stated that a benefit of a traditional IRA is being able to take money out of their savings without paying taxes if the account had been open for at least five years and they were older than 59. In actuality, this is a benefit of Roth IRAs.

Another aspect where individuals may need a refresher was concerning tax-deductible contributions from Roth IRAs. About one in five incorrectly indicated that Roth IRAs allowed for these types of benefits.

Christine Fahlund, senior financial planner at T. Rowe Price, said financial advisors need to do more to improve consumers and investors' understanding of Roth IRAs and how they differ from traditional ones.

"It appears that there's more that we can do to teach younger investors about the different types of IRAs so they can make more informed choices," said Fahlund. "For investors without access to a workplace retirement plan, IRAs are the only accounts available to save specifically for retirement."

She added that it's of utmost importance for employers, financial institutions, parents and educators to inform young investors of the benefits of each type of IRA, as they still have decades in which to save for their retirement.

Fahlund also stated that complex tax reform laws may have contributed to young investors' difficulty with understanding the differences between traditional and Roth IRAs, as contribution limits have been changed on numerous occasions since the creation of IRAs in 1974, the same year in which the Employee Retirement Income Security Act became law.

*according to T. Rowe Price on March 29, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-young-investors-may-misconstrue-benefits-of-traditional-and-roth-iras-800765633.aspx Tue, 01 May 2012 12:19:53 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-young-adults-may-lack-sufficient-retirement-savings-800758273.aspx Many young adults saw the effects the recession and economic downturn had on their parents and grandparents, some of whom lost a significant portion of their retirement savings when the markets collapsed. As a result, many adults are taking a more proactive approach toward their own retirement planning to prevent financial shortfalls during their golden years. However, the results of a recent survey show that while young Americans are more in-tune with the need to save sufficiently for retirement, many feel that they lack the funds to get them through their golden years.

According to a recent T. Rowe Price* survey that examined individual retirement accounts, only 39 percent of investors between ages 21 and 50 think they will have amassed a sufficient amount of retirement savings. In addition, only 63 percent of survey participants say they have developed a comprehensive retirement savings plan that allows them to track their nest egg's growth. Both Generation X—those between 35 and 50—and Generation Y—adults between 21 and 34—expect to rely on the same types of income sources during their golden years, including workplace retirement plans, IRAs and personal savings.

"This research underscores the fact that many more young investors need to get started planning for retirement, even though the date may be decades away," said Christine Fahlund, senior financial planner with T. Rowe Price. "The study also demonstrates the important financial and psychological benefits of having a detailed savings and investment plan. Whether they do it on their own by using planning tools or by working with an advisor, the earlier investors begin saving, the more years their assets will be able to compound and potentially grow."

Detailed savings plans

The results revealed that participants who developed a detailed retirement savings plan felt significantly more comfortable with their retirement prospects, with 58 percent saying they believe they are on the right track toward building a healthy nest egg. Of those individuals who developed a detailed plan, 77 percent said their program focuses on an anticipated monthly budget, while 84 percent said they have a specific withdrawal strategy. Another 78 percent factor life expectancy into their plan when determining how much wealth they will need to amass to cover their living expenses throughout retirement.

However, Fahlund said that while having a detailed retirement plan was a positive component of retirement planning, many survey participants underestimated how their life expectancy would affect it. The mean estimate for life expectancy after retirement was 22 years.

"Many people will live well beyond 22 years in retirement," she said. "To be adequately prepared financially and to ensure they don't outlive their money, we suggest that investors annually save at least 15 percent of their salary, including any available employer match, and consider a possible retirement of 30 or more years, to age 95."

*according to T. Rowe Price on March 8, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-young-adults-may-lack-sufficient-retirement-savings-800758273.aspx Sun, 22 Apr 2012 17:07:33 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/americans-optimistic-about-work-life-balance-and-gender-roles-800748931.aspx Gender diversity in the workplace, coupled with striking the right balance between work and family life, have historically been big issues. While some feel that women in the workplace change the traditional family structure, others view gender diversity in a more positive light. A recent study sheds light on consumers' beliefs about the financial and family ramifications of gender diversity in the workplace, as well as their impact on Americans' work-life balance.

The 12th quarterly Allstate-National Journal Heartland Monitor poll* reveals that more Americans think having a majority of women in the workplace is a positive trend, even though it results in both men and women having to make more trade-offs when it comes to balancing their work and family obligations. Fifty-six percent of both men and women agreed that women in the workplace would benefit the economy. However, 32 percent responded that gender diversity is "troubling and it will have a negative impact on the country because it reflects a shift away from the traditional family structure where women could devote more time to raising children and running the household."

The study also examined Americans' responses by their age demographics, and noted that the majority of adults who see gender diversity in the workplace as a positive topped 74 percent for those between 18 and 29. In contrast, only 41 percent of adults 65 and older gave the same response.

Respondents also appeared to be more optimistic about their finances and willing to focus more on family and personal time than income. For example, when asked what they would choose when given the option between more income, which would require less personal or family time, or less income, but more family and personal time, the latter won out by a 56—35 percent margin.

In addition, the number of both working men and women who are confident in finding a financial solution to improve their overall position also increased for those with a college degree. Seventy percent of men said they are optimistic about their financial condition improving as opposed to 53 percent of men without a degree. Sixty-six percent of working women with degrees also gave the same response, as opposed to 49 percent without a degree.

Problems still persist

Despite the positive responses men and women gave, many agree that problems relating to gender diversity still exist. Currently, women still make 77 cents to the dollar that men earn, and the responses as to why varied among men and women. Forty-nine percent of women and 39 percent of men agreed that women earn less because they are more likely than men to leave jobs or scale back on hours to meet family obligations. Twenty-seven percent of respondents cited gender discrimination as the cause of wage disparities. In addition, 48 percent of both women and men believe that both genders have equal opportunities to advance in the workplace.

"Despite the persistence of the wage gap and some continued doubts about equal opportunity, the most powerful sentiment among women in this poll is a sense of doors opening, especially when compared with previous generations," said National Journal editorial director Ronald Brownstein.

*according to Allstate and National Journal on March 16, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/americans-optimistic-about-work-life-balance-and-gender-roles-800748931.aspx Mon, 09 Apr 2012 17:17:50 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/stunted-job-market-prompts-more-adults-to-return-to-school-800748894.aspx The stunted job market has had a negative impact on Americans from every demographic, ranging from pre-retirees who are trying to grow their retirement savings to middle-aged adults with mortgages and families to support. In addition, young professionals and recent graduates who are trying to build a sound financial structure have also found it difficult to find gainful employment, especially since many may lack job experience. The job market has made modest gains in recent months, signaling an improvement in the labor market. However, with millions of Americans still unable to find employment, many have decided to take on student loans to return to school, in the hopes that the job market will recover by the time graduation rolls around.

According to the 2011 National Consumer Credit Trends Report conducted by Equifax*, federal and private student loan originations increased significantly, growing 4 percent during the year. The breakdown of the results reveals that between 2010 and 2011, the average student loan debt per consumer increased 2 percent, climbing to $9,558 from $9,322. While young adults under 23 have the largest share of student loans, the results reveal that young adults between 24 and 29 have the highest total dollar share of new loans, primarily due to the rising costs of attending graduate school.

Both of these age groups saw the total dollar share amount of new loans rise in 2011, but these amounts leveled off for adults between 30 and 39, marking the first year the amounts have not increased since 2008.

"One of the reasons why the unemployment rate has fallen so sharply is that more people are choosing to go back to school, investing in their human capital in the hopes the job market will improve by the time they are finished," said Amy Crews Cutts, chief economist and senior vice president for Equifax. "The rising numbers of student loans over the past few years are consistent with this trend while, unfortunately, the rising delinquency rates are consistent with the weak job market many face when they graduate."

Student loan debt on the rise

Student loan debt in the United States recently reached $1 trillion, surpassing credit card debt and giving speculation that education balances may become a new problem for the U.S. economy. With recent graduates owing an average of $24,000 in student loans and job market remaining weak, many young adults are at the risk of defaulting on their balances and ruining their credit scores early on.

*according to Equifax on March 13, 2012. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/stunted-job-market-prompts-more-adults-to-return-to-school-800748894.aspx Mon, 09 Apr 2012 17:02:06 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/relocating-seniors-stay-close-to-home-800742064.aspx Relocating for retirement is common among older adults, and many retirees have moved to popular destinations such as Florida and other coastal states. However, new trends show that today's retiring generation is choosing to relocate to areas that are a mere stone's throw from their former residence.

Some retirees are moving away from pricey metropolitan areas to smaller suburban towns on the outskirts as a way of maintaining ties to friends and family, while enjoying the financial benefits of downsizing, according to Reuters*. Richard Johnson, Urban Institute director of retirement policy research, recently analyzed U.S. Census Bureau data and discovered that fewer adults were moving across state lines during their golden years. While one in four retirees moved to Florida in 1990, more recent data shows that just one in seven relocated to the Sunshine State between 2005 and 2010, Johnson told Reuters.

There are several reasons retirees may choose to stay close to home when choosing a retirement location. While moving to a sunny retirement community in Florida is still appealing to many adults, others choose to remain in areas where they have social and community ties with friends and family. In addition, learning the ropes of a new city can be difficult, and some enjoy being close to the cultural amenities, restaurants, shops and other attractions with which that they are already familiar.

In addition to the more sentimental ties that staying in a nearby town allows retirees to maintain, many benefit financially from living close to their former residence. The cost of living in a metropolitan area continues to grow as the price of basic necessities rises, and moving on the outskirts allows adults to take advantage of more affordable housing, lower property taxes and homeowners insurance costs and less intensive home maintenance tasks. Some also move to retirement communities, which provide more amenities and social activities without the hassle of caring for a home.

Driving forces in relocation decisions

There are several factors that drive retirees' decisions when determining where to relocate, including access to medical care, property taxes, cultural amenities and even weather. Because many older adults may have lost a portion of their retirement savings during the economic downturn, cost of living is also becoming a more central driving force in relocation decisions.

*according to Reuters on March 8, 2012. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/relocating-seniors-stay-close-to-home-800742064.aspx Fri, 30 Mar 2012 13:44:24 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/young-americans-may-turn-away-from-homeownership-800739861.aspx Homeownership has always been at the core of the American dream, but current economic conditions and tight lending standards may change Americans' views on owning a home, a new analysis puts forth.

In response to a recent paper introduced at the U.S. Monetary Policy Forum, Federal Reserve of St. Louis* president James Bullard notes that Americans' inability to overcome tight credit restrictions coupled with falling home values may prompt more potential buyers to turn toward rental units, rather than mortgages. Bullard notes that household debt levels, in addition to an increase in multi-generational households, are also indicators that many would-be buyers remain skittish about buying a home.

"My sense is that the housing debacle of the past five years may have scared off a generation of potential homeowners," Bullard remarked. "The current cohorts of new home buyers likely see homeownership as a fundamentally riskier proposition than earlier cohorts and therefore may be more likely to rent rather than to own."

A separate study conducted by Zillow** reveals rent rates increased from January 2011 to January 2012, and are expected to continue growing as more Americans sit on the sidelines of the housing market. According to the survey, median rents increased 3 percent during this period, while home prices fell 4.6 percent. Further, the Zillow Rent Index demonstrated year-over-year gains in 69.2 percent of metropolitan areas covered by the survey.

"The flourishing rental market is the silver lining to the nation's housing downturn," said Zillow chief economist Stan Humphries. "We haven't had a good way to quantify what is happening with rental rates until now, and the inaugural Zillow Rent Index shows us a healthy and growing rental market across the majority of the country, even as home values continue to fall."

Disputes over rental vs. housing market

Analysts are torn on how the rising rental market will affect housing recovery. Some argue that rising demand for a limited supply of apartments will lead to a spike in rental prices and push consumers back toward more affordable homeownership. Others argue that Americans' preference toward renting is here to stay, as few adults meet lending credit requirements or want to take on the risk of homeownership.

*according to the St. Louis Federal Reserve on February 24, 2012
**according to Zillow on March 13, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/young-americans-may-turn-away-from-homeownership-800739861.aspx Wed, 28 Mar 2012 14:22:13 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/factor-taxes-into-your-retirement-options-800735580.aspx Many retirees choose to pick up and relocate to a prized location during their golden years. You may be dreaming about spending your retirement years in a tropical area or residing in a mountain community with beautiful views, but financial professionals encourage you to consider all the costs that come along with relocating. One of the most frequently overlooked costs adults miss when deciding where to relocate is the tax burden of each location.

Each state has its own tax code, with some being friendlier than others. And for individuals living on a fixed income, the tax differences on a state-to-state basis can reach into the thousands, making it imperative to do your homework before packing your bags, according to the CCH Group*.

"As the economy begins to improve, more retiring baby boomers may begin looking at where they may want to live in retirement," said CCH state tax analyst Kathleen Thies. "Taxes are one of the things they should consider when determining the costs of different areas they are looking at."

The CCH Group advises adults who are considering relocating to take a range of tax implications into account, including state taxes on retirement benefits, state income tax rates, state estate taxes, property taxes and state and local sales taxes. For example, Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not impose state income taxes on individual income, making these locations popular tax havens for many retirees. Other states, such as New Hampshire and Tennessee, only impose taxes on dividends and interest earnings.

Further still, the remaining 41 states that do impose an income tax may have different exclusions for pension income or Social Security benefits. In addition to income taxes, it is imperative to compare income tax rates of prospective retirement locations. Some states, such as Indiana and Pennsylvania, impose a flat tax rate, while others carry a marginal tax rate that is dependent on income.

Taxes can take a significant chunk out of an individual's retirement savings. So before making any big decisions about relocating, make sure you understand each location's tax benefits and drawbacks.

*according to the CCH Group on Feb. 7, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/factor-taxes-into-your-retirement-options-800735580.aspx Thu, 22 Mar 2012 14:10:24 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-americans-financially-ill-equipped-to-handle-emergencies-job-loss-800735574.aspx Many Americans are struggling to get back on solid financial ground following the recession, and a large percentage of households are battling job losses, falling home values and rising gas costs. Although adults may be focused on paying off credit card debt or rebuilding their retirement savings, fewer Americans say they have improved their finances enough to handle sudden expenses or another emergency.

The 2012 Assets and Opportunity Scorecard reveals 43 percent of Americans have nearly no money in savings, according to the Corporation for Enterprise Development (CFED)*. In addition, 27 percent of households are characterized as asset poor, meaning they have insufficient savings or other assets to cover three months of their basic living expenses in the event of a job loss or other financial emergency. According to the results, the number of households considered asset poor has jumped from one in five families to one in four since the 2009-2010 scorecard.

"Growing numbers of families have almost no savings or other assets to see them through if they lose their jobs or face a medical crisis," said Andrea Levere, president of CFED. "Without savings, few will be able to build a more economically secure future, including buying a home, saving for their children's college educations or building a retirement nest egg."

Building an emergency fund

Most experts recommend stashing away enough money to cover roughly three to six months' worth of living expenses. This amount can be daunting to families who are already strapped for cash, but carving out a spot in your monthly budget for emergency savings is crucial to your overall financial well-being. Those who have no emergency funds saved and befall a financial crisis, ranging from a sudden medical expense to a job loss, may find themselves forced to drain their retirement accounts or turn to credit to cover their needs.

Instead, adults should consider automating a portion of their paycheck to a separate savings account each month until they have accrued enough funds to last them in the event of a crisis. Accumulating enough to cover a serious expense may take time, but having some money stashed away for an emergency is better than having no resources to turn to.

*according to the Center for Enterprise Development on Jan. 31, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-americans-financially-ill-equipped-to-handle-emergencies-job-loss-800735574.aspx Thu, 22 Mar 2012 14:05:54 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/boomers-name-most-important-relocation-factors-800725454.aspx The years leading up to retirement are pivotal for the baby boomer generation, many of whom started retiring last year. However, sufficient retirement planning involves more than establishing a budget, saving money and choosing smart investments. For many boomers who plan to relocate during their retirement years, it involves choosing an area that provides financial, health and social benefits.

A new poll conducted by the Consumer Federation of the Southeast* highlighted the key features that the baby boomer generation will seek out in 2012.

According to the results, 96 percent of study participants said moving to an area that offers top-quality healthcare services is "very" or "somewhat" important to them when they are shopping for a retirement location. Ninety-two percent, however, said affordable housing was a primary driver of choosing a new area, while a temperate or warm climate ranked third on the list at 85.5 percent. Lastly, low local taxes were another concern, with 81.1 percent of boomers listing these costs as "very" or "somewhat" important in their relocation decisions.

"Already, thousands of boomers are retiring every day nationwide," said Walter Dartland, president of the Consumer Federation of the Southeast. "According to this survey, substantial numbers are interested in relocating in retirement. The decisions they make about where they will retire will have a huge impact not only on their families' finances but on the communities to which they move."

When asked to name their top retirement destination, 18 percent listed Florida as their top pick.

Recreation and culture also listed as important factors

In addition to healthcare and affordability, many boomers also stated their preference toward small to mid-sized areas that provided recreational activities and a high standard of living. Three out of four boomers said they prefer to relocate to an area that offers art or cultural opportunities, while nearly half are partial to regions that provide adult education opportunities. The same percentage said a welcoming and diverse community was also high on their list of desirable locations.

"This survey offers important insights into what is significant to relocating boomers," Dartland said. "It underscores that for millions of boomers who are considering relocating, good value, a welcoming community and thoughtful choices about their future are uppermost in their minds."

*according to the Consumer Federation of the Southeast on February 1, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/boomers-name-most-important-relocation-factors-800725454.aspx Thu, 08 Mar 2012 08:24:32 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-sellers-to-offer-realistic-home-prices-in-2012-800725453.aspx Falling home prices and record low mortgage rates have created a favorable housing market for prospective buyers. However, many sellers facing falling values have been left out in the cold, and many are finding it challenging to attract potential buyers and sell their existing homes at a reasonable price.

The results of a new Coldwell Banker* survey of 600 real estate professionals reveal that the reality of the economy has sunk in for many sellers, and existing homeowners will price their homes more competitively this year to reflect current market conditions. According to the study, 51 percent of sellers will price their homes reasonably this year, and 45 percent are willing to make changes to the appearance of their homes to draw in more homebuyers.

Cosmetic changes take center stage

Ninety-four percent of agents said sellers were taking more steps to improve their home's appearance by adding new paint, making repairs and taking strides to remove clutter from their home. In addition, 78 percent of professionals agreed more sellers are removing sentimental or personal items from their home in order to give a more neutral appearance for buyers. De-personalizing is one of the most common pieces of advice agents give to consumers who are selling a home, and real estate professionals agree it may bring many benefits.

"De-personalizing and making it easy for a buyer to imagine him or herself living in the property is crucial, especially when there are many homes on the market," says Jessica Edwards, Coldwell Banker real estate consumer specialist. "Within the past year, sellers were more willing to price their homes competitively and took my advice to make their home inviting and appealing to a broad cross-section of potential buyers."

Buyers weigh in on most important features

Some cosmetic features appear to be a factor in buyers' decisions, the survey notes. Thirty-three percent of agents said buyers focus on an updated kitchen when making a decision, while 12 percent prefer homes with updated bathrooms. Fourteen percent agree that an open floor plan is most appealing to potential buyers.

However, the survey also noted that more buyers are shifting away from "bonus" rooms, such as entertainment rooms, parlors and other spaces that carry little utility.

*according to Coldwell Banker on February 21, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-sellers-to-offer-realistic-home-prices-in-2012-800725453.aspx Thu, 08 Mar 2012 08:21:49 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/know-the-credit-score-facts-before-buying-a-home-800725451.aspx Obtaining financing from lenders is one of the challenges you may face when buying a home, and your credit score will play a predominant role in your bank's decision to extend a loan. Your three-digit number is used by lenders to determine your creditworthiness and the likelihood that you will honor your contract and pay back your loan. However, for all the weight your credit score carries, there are several myths surrounding this number that may have a negative impact on your financial behavior.

Understanding and dispelling these popular myths may influence the way in which you go about the mortgage process, shop for a home and manage your credit during the mortgage process, according to Silicon Valley Community Newspapers*.

Myth 1: I pay my bills, so I don't need to check my credit report, credit score

Too many Americans assume that because they manage their finances well and pay their bills on time, they don't need to check their credit reports or credit scores. However, the truth is, lenders, service providers and credit bureaus make mistakes like anyone else, and if small inaccuracies or erroneous information are listed on your report, it may be hindering your credit profile. If you haven't applied for credit in a long period, it's unlikely that you even realize your credit standing is less than stellar. Roughly 85 percent of credit reports contain an error that may negatively affect your credit score, so make it a point to check.

Myth 2: My credit card balances won't influence my application

In addition to errors, checking your credit standing is a good way to pinpoint seemingly harmless behaviors that may be keeping your score from growing, such as carrying high balances. Thirty percent of your credit score calculation is based on your credit utilization rate, or the ratio of debt you carry versus your overall available limit. For example, if you have a spending limit of $1,000 and carry a $500 balance, your utilization rate is 50 percent. When it comes to buying a home or applying for any line of credit, lenders like to see a low utilization rate. This demonstrates to them that you are using credit responsibly and are not reliant on credit.

Myth 3: Multiple mortgage or auto loan applications will hurt my score

Lenders understand that you will comparison shop for a mortgage or auto loan before deciding on one. For this reason, multiple applications for auto loans made within a 30-day period will count as one "hard inquiry" on your credit score. This period extends to 45 days for prospective buyers who are shopping for a mortgage.

However, it's important to understand how hard inquiries work when you are shopping for a home. Even if you submit multiple mortgage applications within the allotted period, avoid applying for other lines of credit during this period, such as credit cards, gas cards and retail cards. These inquiries are not counted the same way and each application for a credit card will be posted on your credit report and negatively impact your score.

*according to Silicon Valley Community Newspapers on February 20, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/know-the-credit-score-facts-before-buying-a-home-800725451.aspx Thu, 08 Mar 2012 08:11:27 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/housing-affordability-impeded-by-economy-credit-conditions-800725447.aspx Homebuyers have their choice of real estate due to current housing market conditions. However, analysts say that despite housing affordability and competitive mortgage rates, the struggling economy and tight lending standards may continue to impede renewed interest in and recovery of the housing market.

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index*, housing affordability on a national scale reached record levels during the fourth quarter of 2011. The data shows that 75.9 percent of new and existing homes sold during this period were considered affordable to households earning a median income of $64,200. This percentage is the highest recorded in the 20 years of the index.

The Youngstown-Warren-Boardman markets in Ohio and Pennsylvania were listed as the most affordable in the country, with 95.1 percent of homes being affordable to households earning the region's average income of $54,900. In contrast, the New York area was among the least affordable markets, with only 29 percent of homes sold correlating well with the area's median household income of $67,400.

Despite greater affordability among many of the nation's popular regions, analysts say that tight credit conditions, high unemployment, rising cost of living, and low consumer sentiment are likely to continue weighing on the minds of potential buyers.

"While today's report indicates that homeownership is within reach of more households than it has been for more than two decades, overly restrictive lending conditions confronting home buyers and builders remain significant obstacles to many potential homes sales, even with interest rates at historically low levels," said Barry Rutenberg, NAHB chairman.

Conditions may turn around

Despite credit markets and economic conditions, some analysts say that rising rental rates, which will likely come from a higher consumer demand for rental properties and a limited supply, might push more Americans back toward homeownership. This scenario may in turn prompt a modest increase in home prices and help stabilize some ailing housing markets.

While experts continue to dispute the future of homeownership vs. renting in the United States, analysts do agree that the stubbornly high unemployment rate is a factor that will continue to inhibit housing market recovery overall.

*according to the National Association of Home Builders on February 16, 2012 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/housing-affordability-impeded-by-economy-credit-conditions-800725447.aspx Thu, 08 Mar 2012 07:56:30 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-let-caregiving-responsibilities-weigh-you-down-800703597.aspx Middle-aged Americans face a number of familial and financial obligations, ranging from caring for children and holding down a job to retirement planning and paying off their mortgage. But as the life expectancy of older Americans continues to rise and more than 10,000 adults turn 65 every day in the United States, middle-aged adults may also take on more of a caregiving role to aged parents and family members, according to BeSmartBeWell.com*.

This group, known as the sandwich generation, is known for caring for both their own children and older family members. However, in the process of taking care of their children, working full-time, giving aid to an older family member and dealing with the daily wear-and-tear of bills and other responsibilities, many middle-aged caregivers can face physical and emotional health problems themselves, the websites reports. According to a separate AARP report, roughly 40 to 70 percent of adult caregivers exhibit depression symptoms and face a higher risk for cancer, diabetes and heart conditions.

Protect yourself from health problems

Caring for elderly parents and your children can bring on a great deal of stress, which can lead to fatigue and exhaustion as well as more serious diseases and conditions. Therefore, striking a balance and finding time for you is essential. The same methods you use to stay healthy—exercising, eating right and finding time for you—are the same methods you can use to reduce caregiving stress, the website reports.

In addition, it's important to know your boundaries and seek help when you are feeling overwhelmed. There are a number of services that can aid you when it comes to caregiving responsibilities and reaching out to professionals may be in your best interest. In addition, it's imperative that you also know how to resolve conflicts that may arise when you are aiding a parent or relative, such as how to deal with their finances. A recent AARP article** highlighted the need to listen to your family's desires openly and respect their wishes as often as you can. In some cases, elderly parents who are used to doing for themselves may feel as though they are becoming a burden or being treated as children. For this reason, it's important to understand their needs as well and speak openly about the best way to reach a compromise that works for all parties involved.

*according to BeSmartBeWell.com on Nov. 30, 2011

**according to AARP, accessed on Dec. 6, 2011 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-let-caregiving-responsibilities-weigh-you-down-800703597.aspx Wed, 08 Feb 2012 16:01:36 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/refusal-to-take-out-student-loans-may-have-negative-impact-on-graduation-rates-800703537.aspx Student loan debt is becoming a more serious issue in the United States and recently surpassed credit card debt. Currently, the average student graduates with a median student loan debt amount of $25,000. Coupled with a flailing economy, rising prices for gas and groceries and a high unemployment rate, many indebted young adults are finding it difficult to make ends meet and are being forced to live at home and take-on part-time jobs to get by.

These reasons make the case for refusing student loans at all costs more appealing to a number of young adults who are working full-time, attending community colleges and living at home to pay for school out of pocket and avoid federal financing. And while this appears to be a responsible and practical approach, many educators say this tactic may actually be more harmful than helpful in the long run, according to The Associated Press*.

Students who pay for college costs on their own may be less likely to finish school due to the many financial challenges and educational restrictions they face, the AP explains. This may be the case for a number of reasons, the first of which being that young adults may be forced to work long hours at various jobs to make ends meet. This gives them less time to study and engage in networking and educational opportunities that come their way. Because of the hours they are forced to work, young adults may also take fewer credits, extending the length of time it may take them to graduate, the AP adds.

Co-founder and vice president of non-profit Excelencia for Education Deborah Santiago recently analyzed data with her group and the Institute for Higher Education Policy found 86 percent of adults who took out student loans could attend full-time, while only 70 percent of those who did not borrow were able to take on a full-time student role. In addition, 60 percent of full-time adults finished their bachelor's degree within eight years, while only 25 percent of part-time students achieved the same goal.

"There's been such attention on student debt being unmanageable that current students have internalized that," Santiago told the AP. "If you can take out a little bit of loan you're more likely to complete. If you can go to a more selective institution that gives you more resources and support, you're more likely to complete."

In addition, these students may also be limited in the types of schools they can afford. Most young adults start off in community college with the intention of transferring to a four-year institution, but this goal is often delayed, the AP reports. The news source cites research that demonstrates only 26 of young adults who enroll in community college earn a four-year degree within nine years.

*according to The Associated Press on Nov. 30, 2011 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/refusal-to-take-out-student-loans-may-have-negative-impact-on-graduation-rates-800703537.aspx Wed, 08 Feb 2012 15:44:44 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/ease-into-your-retirement-years-800703527.aspx Retirement planning is a complex task and one that experts encourage individuals to take on as early as possible. But it's easy to get caught up in only planning for the financial aspects of retirement, when in reality, entering into your golden years is a significant life change in and of itself.

Leaving the workforce after being employed for the majority of your life may take some getting used to, and many retirees make other big transitions as well, such as downsizing to a smaller home, relocating or taking on new hobbies and friends. Because these changes can be overwhelming if taken in all at once, some experts are encouraging soon-to-be retirees to start taking steps toward retirement before the big day actually comes.

For example, living on a budget during you retirement years is crucial because you will be living on a fixed income. This transition can be significant when you're accustomed to having a steady paycheck, so practice adhering to your retirement budget before you actually leave your job, Bankrate.com* reports. This will allow you to find out what works and doesn't work for you and allow you to put more of your paycheck into savings or investments.

While you're still focusing on your financial planning, it may also be a good time to make big decisions about housing, transportation and other large assets. Perhaps you are thinking about purchasing a second home or downsizing to a smaller house. Thinking more seriously about these changes while you're still bringing in a steady income may put you in a better state of mind to make wise financial decisions, the news source reports.

Plan ahead for Social Security withdrawals

One of the biggest pieces of advice most retirement planners provide to their clients involves Social Security and the timing of their withdrawals. Social Security benefits can be a great financial safety net and delaying your withdrawals until you are older can allow you to capitalize off of accrued interest and receive larger payouts, Bankrate explains. New York Life Center for Retirement Income director and professor Kenn Tacchino told the news source that retirees who put off collecting Social Security benefits starting at age 62 will receive 8 percent more benefits per year.

In addition, you may decide to defer your retirement until you turn 70 and use your 60s to continue working and saving. If this is the case, you can continue boosting your nest egg and put yourself in a better position to fund investments or annuities, travels, back-to-school goals and other life events you want to participate in during your golden years. The key is to start planning ahead early.

"In this country, retirement has sort of become this mythological thing where people think it's magically going to happen," Preston and Cleveland Wealth Management financial advisor Bo Hanson told the news source. "At 65, you're going to retire."

*according to Bankrate.com on Nov. 25, 2011 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/ease-into-your-retirement-years-800703527.aspx Wed, 08 Feb 2012 15:40:17 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/industry-professionals-disagree-on-difficulty-of-obtaining-a-mortgage-800703517.aspx Americans have received a mixed bag of information relating to the housing industry, with some reports heralding record low mortgage rates and home prices and others lamenting the rise in underwater homes. Although the volatile market may be sending out different signals to consumers, one message has been consistent throughout the housing crisis: obtaining a mortgage loan is difficult.

The housing collapse created panic amongst lenders, most of whom had extended large loans to risky borrowers who defaulted or lost their home to foreclosure. In response, lenders quickly raised the bar on their lending criteria, making it difficult for even the most creditworthy of individuals to obtain the financing they need. In addition, many consumers with strong credit scores may be facing unemployment or high levels of debt, essentially alienating them from the credit market.

However, a new report is seeking to debunk the theory that obtaining a mortgage loan is difficult in today's current credit conditions and many industry experts are disagreeing with this new data. Zillow chief economist Stan Humphries examined the Home Mortgage Disclosure Act data and reveals that the conversion rate for applications and originations for conventional mortgages increased in 2010, surpassing the figures recorded in 2000 and 2006 before the housing collapse, CNBC* reports. In 2000, the conversion rate sat at 54 percent and increased to 61 percent in 2006, the news source explains. In 2010, however, the rate increased again to 63 percent. Humphries also notes that credit scores are stronger today than they were pre-housing crisis.

Despite these figures, National Association of Realtors chief economist Lawrence Yun disagrees.

"Zillow is looking at the wrong data," Yun told CNBC. "It is not about rejection rate on formal mortgage applications. Many people are not given pre-approval and dissuaded about loan qualifications even before formally applying. Furthermore, many people do not even try applying after hearing from friends and colleagues."

The National Association of Home Builders also chimed in with the results of a survey it conducted, noting that 73 percent of participants reported they have not relocated due to fears that they would not receive financing, the news source explains.

*according to CNBC on Nov. 22, 2011 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/industry-professionals-disagree-on-difficulty-of-obtaining-a-mortgage-800703517.aspx Wed, 08 Feb 2012 15:35:36 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/first-time-home-buyers-face-significant-lending-obstacles-800703498.aspx The housing market faces a number of unique challenges and current conditions have created a Catch-22 for both prospective buyers and lenders. Analysts have agreed that recovery of the housing market depends largely on new buyers entering the market and purchasing homes. However, lenders remain hesitant to extend financing to prospective buyers for fear of taking on too much risk.

New data reveals that first-time home buyers, in particular, have had to clear hurdles in order to obtain mortgage loans and recovery of the housing market may be suffering as a result, according to the 2011 National Association of Realtors Profile of Home Buyers and Sellers.

"First-time home buyers fell to a 37 percent market share in the past year from a record high 50 percent in the 2010 study," said outgoing NAR president Ron Phipps. "Although last year's findings were boosted by the home buyer tax credit, long-term survey averages show that four out of 10 buyers are typically first-time buyers. This segment is critical to a housing recovery because they help existing home owners sell and make a trade."

Demographic of new home buyer changes

The study also reveals a shift in the demographic of new home buyers who qualify for financing. The median income of first-time home buyers increased from $59,900 in 2010 to $62,400. In addition, the study saw a spike in the number of married couples who purchased homes, which rose from 58 percent to 64 percent. The percentage of singles who took on a mortgage fell during the same period. Single female home buyers fell from 20 percent to 18 percent, while single male home buyers also dropped from 12 percent to 10 percent.

"The growth in married couples suggests buyers with dual incomes are better positioned to qualify for a mortgage in this tight credit environment," said NAR vice president of research Paul Bishop.

Lastly, the median down payment home buyers were able to spend increased one percentage point to 11 percent.

Homeownership remains important to most Americans

Despite the additional hurdles most home buyers are facing today, current homeowners say they are happy with their decision to purchase a house. Seventy-eight percent of survey respondents said they believe their home is a good investment, with 45 percent saying owning a home is more financially beneficial than holding stocks. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/first-time-home-buyers-face-significant-lending-obstacles-800703498.aspx Wed, 08 Feb 2012 15:22:10 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/few-americans-purchase-long-term-care-insurance-despite-risks-800703486.aspx Most individuals who start planning for retirement contemplate the significant decision of whether to purchase a long-term care insurance policy. Although long-term care plans help shield individuals from the high costs of nursing home stays, home care and medical equipment, a large percentage of individuals are loathe to pay premiums on a policy they may never use.

The results of a new survey reveal that Americans understand the financial and health implications of not purchasing a policy, but many still refuse to take on these costs. The report, released by the LIFE Foundation, a nonprofit consumer education company, shows 71 percent of respondents believe 50 to 80 percent of adults 65 and older will need long-term care services at some point. However, just 8 million Americans have policies, even though 100 million are older than 50.

"Americans really seem to understand that the chance of needing long-term care services is significant, which is why it's frustrating to see how few are financially prepared," said chair elect of the LIFE Foundation Deb Newman. "Long-term care insurance is one of the best ways to guarantee that you'll get the care you need if one day you're no longer able to care for yourself."

In addition, most participants also understand that the costs of a stay in a nursing home would be significant, with 65 percent saying they believe the annual costs in a private nursing facility would range from $58,000 to $88,000.

Curb costs by purchasing a policy before retirement

Many Americans who have already taken on significant financial responsibilities may balk at the idea of paying premiums for long-term care insurance while still young and healthy. However, individuals who purchase policies at a younger age will likely pay lower premiums because they will be in better health. While 76 percent of long-term care insurance policies are purchased when individuals are between the ages of 45 and 64, experts say consumers who buy a policy in their 40's or 50's will enjoy the best affordability.

There are also a variety of different policies offered, so Newman says it's imperative to understand the different options and choose the one that best suits your needs. Many employers are also including long-term care options in their benefit packages, giving workers more opportunities to take control of their future medical needs.

Despite the variety of options, Newman says too few individuals are taking their long-term care needs seriously.

"If you knew that you had a 70 percent chance of winning the lottery, you'd probably buy a bunch of tickets," said Newman. "While it's not a perfect analogy, Americans seem to be aware that there's a significant chance that they'll need long-term care assistance at some point, and yet hardly anyone is buying long-term care insurance. Something is wrong with this picture." http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/few-americans-purchase-long-term-care-insurance-despite-risks-800703486.aspx Wed, 08 Feb 2012 15:13:14 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/business-owners-say-lack-of-financial-planning-is-a-crisis-800703306.aspx When it comes to employees implementing financial planning for retirement, a considerable number of business owners say their workers are doing a poor job.

According to a recent survey conducted by Harris Interactive of 501 small business owners, 75 percent of them said Americans are so unprepared for retirement that it's reached crisis levels. However, when these same respondents were asked about whether their companies offered workers' retirement plans such as a 401(k), just one in five indicated they did.

Owners feeling the heat from their employees

But the poll also found that these business owners were facing pressure from their workers to start offering retirement plans, as 37 percent who had at least six employees working under them said they had been approached by their workers and asked why the company didn't offer one .

To help more employers offer retirement savings plans, lawmakers have proposed a bill that would encourage companies to offer them by making the administrative process less daunting.

SAVE Act would encourage businesses to offer retirement plans

House Bill 4742, otherwise known as the Small Businesses Add Value for Employees Act, would enable small businesses to pool together Multiple Small Employer Plans that are less expensive than single employer plans. The measure was initially proposed by House Representatives Ron Kind of Wisconsin and David Reichert of Washington.

Anne Arvia, a retirement plan specialist, said that the SAVE Act would help remove many of the barriers that often prevent small businesses from offering them.

"The SAVE Act is an important step toward improving the lives of American workers who don't have access to an employer-based retirement plan," said Arvia.

Poll: Four in 10 put nothing toward retirement

Should the measure pass, it will likely encourage Americans to put more of an emphasis on retirement, which a surprisingly high number of individuals aren't doing. An eNation survey conducted on behalf of consulting and professional development firm LIMRA found that of Americans 18 years of age and older, 40 percent said they currently save nothing for retirement.

"Our research indicates that fewer future retirees will have pensions to pay for their living expenses and more will be relying on their personal savings to fund their retirement," said Matthew Drinkwater, associate managing director for LIMRA Retirement Research. "Without a significant change in savings behavior, many Americans will not have enough money to afford to retire."

The reason why this may be the case is because many people don't know where to begin. According to polling company Penn, Schoen and Berland Associates, 40 percent of respondents polled said they were confused about the best steps to take to start saving for retirement.

The poll found that while younger respondents were the most likely to express confusion about retirement planning, baby boomers were often vexed by the topic as well. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/business-owners-say-lack-of-financial-planning-is-a-crisis-800703306.aspx Wed, 08 Feb 2012 12:42:03 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-employees-dont-have-firm-grasp-of-benefits-packages-800679697.aspx Workers who are enrolled in employer-sponsored benefit plans have a number of financial advantages and opportunities. They can boost their retirement savings by contributing to a 401(k) plan, often with a company match, and take care of their medical needs and those of their family with health insurance. In addition, many firms may also offer life insurance, long-term care insurance and other benefits to help workers plan for future needs.

However, the results of a new study show that although many workers across the country are enrolled in these programs, few understand the details of their benefits packages. According to the ADP Research Institute study, 40 percent of workers do not understand their current benefits plan, making it more difficult for them to make important decisions about retirement planning, health insurance and other components that impact their overall income and compensation.

Tim Clifford, ADP president of benefit services, says the results signal a greater need for employers to take the reins on communication and use the resources available to them to educate their workers on their benefits.

"With many employees asked to take on greater responsibility for managing their own benefits, there is room for improvement by HR departments to engage employees in the decision-making process," he said. "With the power of web-based and mobile technologies and decision support tools, we have new, innovative and cost-effective ways of educating employees and helping them make critical choices anytime and anywhere."

Human resources study respondents named budget restraints and un-utilized education tools as a factor in employees' limited understanding of benefits.

According to the results, 66 percent of mid-sized companies and 36 percent of large companies do not have a budget in place for educating workers on their benefits packages. In addition, 72 percent of mid-sized companies and 51 percent of large companies do not currently provide decision-making tools to employees to help them understand or navigate through the details of their benefits packages.

Rather, most mid- to large-sized companies offer web-based portals that provide employees with the details of their particular benefits package, with 71 and 86 percent, respectively, saying they offer this medium to employees.

Employee education

Understanding your benefits package is imperative to planning your financial future and making sure you are covered and well-prepared for significant life events, ranging from starting a family or planning for retirement to a serious illness or suffering a permanent disability. Although some employers do not offer web-based or mobile technologies to help decipher your plan, it's important to read over your benefits program in its entirety and contact your human resources department about questions or concerns you have. By becoming more aware of the benefits and limitations of your plan, you can plan ahead and seek out insurance alternatives or other retirement options that may fall more in line with your present financial circumstances or future goals. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/many-employees-dont-have-firm-grasp-of-benefits-packages-800679697.aspx Mon, 09 Jan 2012 13:49:28 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/moderation-is-key-for-future-home-buyers-and-sellers-800659964.aspx The current housing market has both buyers and sellers on edge, many of whom are apprehensive about taking any actions until the economy stabilizes. Although low prices and competitive mortgage rates have created a buyer's market, many prospective homeowners are facing lending, income and debt obstacles that impede them from homeownership. Sellers, in contrast, are hesitant to place their properties on the market as declining home values are making it difficult to get a good deal.

But experts say adopting a certain attitude can solve these problems for both sets of participants: moderation. Home buyers who keep their sights set on smaller homes, rather than jumbo mortgages, can capitalize off low home prices and rates and lower their risk of taking on an unaffordable home loan, CNN Money reports. A recent Trulia survey shows many adults are still optimistic about their prospects for homeownership, but plan to steer clear of McMansions in favor of smaller, more affordable properties. The percentage of respondents who said their ideal home size is more than 3,200 square feet declined by 36.5 percent, falling from 9 percent in 2010 to 6 percent in 2011.

"Given the strong intent to buy a home among today's renters and homeowners, I am optimistic that long-term housing demand will recover—even though today's prices tell a different story," said Trulia's chief economist Jed Kolko. "But the homes that people will want in the future will look different than today's housing stock. Retiring baby boomers won't want big suburban houses: they care more about easy access to restaurants and retail and will be willing to trade down. High gas prices—which make long-distance commuting more expensive—will accelerate this trend especially among Millennials, as would changes to the mortgage interest deduction that reduce demand for expensive homes."

Sellers urged to set realistic prices

Although buyers may face lending obstacles, sellers face challenges in receiving a fair price for their properties, many of whom have seen values fall significantly. Experts encourage sellers to set realistic prices to avoid over- and under-pricing their homes, CNN Money reports. To avoid gross price discrepancies, sellers and their brokers are advised to rely on sales data released within a 90-day period to ensure the figures are up to date, the news source reports. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/moderation-is-key-for-future-home-buyers-and-sellers-800659964.aspx Fri, 09 Dec 2011 13:35:10 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-underestimate-the-added-costs-of-purchasing-a-home-800659962.aspx The mortgage process can be long and expensive, so when it's all said and done and you're holding the keys to your new home, it's natural that a feeling of contentment will set in. And while you should be happy with your homeownership accomplishment, it's also important that you look at your next set of costs— added homeownership expenses.

When you're renting a property, it's easy to overlook the costs that you may not have had to pay for, ranging from property insurance and utilities to a furnace or washer and dryer. But when you own a home, there are several costs that you will take on to properly run and maintain your investment, and establishing a budget early on to cover these costs can help you avoid being forced to drain your savings later.

Air and heat costs

Installing central air conditioning, a furnace, or hot water heaters can be an expensive endeavor, but a necessary one. All Temp Heating and Air Conditioning sales manager Ned Charlton says a new central air unit starts around $3,000 and must be replaced every 12 years, according to the New York Times. A furnace runs roughly around $3,800 and carries a shelf life of roughly 18 years, he adds.

Hot water heaters, in contrast, begin around $1,200, Goode Plumbing's Michael Goode told the Times. The number of hot water heaters needed will vary depending on how many bathrooms are in the home.

Proper maintenance of these systems can help them live to their maximum capacity, so homeowners should read the ownership manuals thoroughly to learn how to care for them.

Roof

Many homeowners focus on what's in and around their home rather than the roof that's covering it. Keeping your home's roof maintained and replacing it every 25 years is crucial and can help you ward off other types of damage to your home that can result from a weak or water-damaged roof, the Times reports. The 25-year replacement threshold may vary by location, size and exposure to inclement weather. One related maintenance task homeowners should take on involves keeping their gutters clean and clear of debris. When leaves, twigs, dirt and other materials become clogged and trapped, they can trap moisture and lead to water damage and rotting.

Trash Pickup and Snow Removal

Many cities provide services that pick up your garbage or plow your streets during snow storms. But other areas may charge a fee to pick up your trash. And more often than not, it may also be your responsibility to pay for a snow removal service to clear sidewalks and driveways. Before you move into a new home, make sure you understand which responsibilities and tasks your town may impose on you. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-underestimate-the-added-costs-of-purchasing-a-home-800659962.aspx Fri, 09 Dec 2011 13:31:59 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/is-long-term-care-insurance-a-necessity-800653856.aspx Today's volatile economic climate has more adults paying attention to their retirement needs and enacting measures to provide additional layers of security for their golden years. Access to affordable medical care is a longstanding factor that individuals take into consideration when determining how much retirement savings they need to amass, and some are turning to long-term care insurance to ensure they don't dry up their income and jeopardize their finances should they fall ill during retirement.

Long-term care insurance allows adults to purchase a policy that pays for future medical needs, such as a stay in a nursing home, medical equipment, a private nurse, and other resources associated with chronic illnesses or disabilities. Recent statistics released by Medicare reveal that by 2020, roughly 12 million adults will require some form of long-term care, constituting a heavy financial burden on retirees and in some cases, their families. For these reasons alone, purchasing a long-term care policy is appealing to many adults.

"The additional expense of long-term [care] can be $40,000-$90,000 a year," Rich Arzaga, founder of Cornerstone Wealth Management, told financial news website DailyFinance.com. "The average American cannot survive this risk and expense."

Critics

Although long-term care can help adults ward off potential financial ruin after an unexpected illness, other individuals are hesitant to pay monthly insurance premiums to a policy for an illness or disability that may never occur. But industry professionals encourage skeptics to consider the true costs of paying for medical care without a sizable amount of savings and financial resources. In addition, financial consultant Wilma Anderson says these same critics often incorrectly assume government health programs will help curb these costs.

"Many folks wrongly believe that letting the government pay for their anticipated long-term care needs is the best solution, but Medicaid programs are in trouble funding-wise in every state," she told Daily Finance. "In the future Medicaid may become even harder to qualify for. If you don't plan for LTC, you may have limited or no choices to pay for care when your health changes."

Plan ahead

The decision to purchase long-term care insurance is a significant one, and similar to any other large financial undertaking, it's important to explore different policies, your current finances and your overall health. Paying attention to your needs and the needs of your family as they evolve may prompt you to start considering forms of financial protection that previously seemed irrelevant. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/is-long-term-care-insurance-a-necessity-800653856.aspx Thu, 01 Dec 2011 12:32:02 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/homeowners-may-see-triple-dip-in-home-values-800639205.aspx Prospective homebuyers who are shopping for their dream home are at a significant advantage as housing inventory is full and mortgage rates are low. But current homeowners may be in for more bad news as experts predict home prices will fall steeply again in the coming months, giving the ailing housing market even higher to climb in its road to recovery.

New data from analytics company Fiserv reveals home prices are likely to drop 3.6 percent by June 2012, CNN Money reports. The new decline will push values to a new record low of 35 percent below their peak, constituting a triple dip in values, the news site adds. Experts say the hardest-hit areas will be those that have currently been struggling to keep their heads above water, primarily California, Nevada and Florida.

Contributors

Economists have pegged the housing bubble bust, stagnant employment figures, high foreclosure rates and the robo-signing controversy to previous dips in home values. The upcoming drop in values is said to be the work of the largely unchanged unemployment rate and an expected spike in foreclosure rates, CNN Money reports.

Texas A&M University economist Mark Dotzour also notes that a flood of roughly 6 million foreclosures that have not yet been added to the housing inventory may also spark a triple dip in values. A sizable number of new homes on the market may only drive prices further, he explains.

As a result of negative news relating to the housing market and other economic factors, millions of prospective homeowners are turning their backs to homeownership in favor of renting. Others are moving in with family members and creating multi-generational households to save money. And still, more young adults are putting off homeownership until the employment rate and economy improves.

Ramifications

Currently, millions of homeowners are underwater on their mortgages, meaning they owe more on their home loans than their homes are worth. As a result, more households are struggling to make payments and many are unable to meet the current refinance eligibility requirements.

President Barack Obama recently unveiled new additions to the Home Affordable Refinance Program that may allow underwater homeowners with loans guaranteed by Fannie Mae or Freddie Mac to refinance. The rule wipes out the 125 percent loan-to-value ratio and eliminates many of the fees and appraisal costs associated with refinancing. However, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, estimates that the plan may only allow 1 million homeowners to refinance, a figure critics say will not be enough to boost recovery of the housing market.

Experts say home values may improve slightly between June 2012 and June 2013, but they estimate the gain will be a modest 2.4 percent, too low to make a significant difference in the ailing market. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/homeowners-may-see-triple-dip-in-home-values-800639205.aspx Thu, 10 Nov 2011 15:28:12 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/more-than-one-quarter-of-young-adults-cannot-afford-to-repay-student-loans-800639199.aspx No group has gone unaffected by the economic crisis and stubbornly high rate of unemployment, and young aspiring adults are finding it especially difficult to set a firm financial foundation. Many young adults between 18 and 29 are struggling to accomplish the American Dream and pay down student loans and other forms of debt simultaneously. And in an age when the average college student graduates with roughly $24,000 in educational debt, a faltering job market makes it difficult for young adults to manage their payments and work toward other goals.

A recent study conducted by nonprofit group Generation Opportunity reveals more young adults in the 18-29 age range are being forced to not only put off payments toward student loans, but also set aside other life goals, such as starting a family and purchasing a home.

Twenty-seven percent of participants said they will be forced to stop paying their student loans or other forms of debt due to the economy. In addition, 48 percent say they will delay purchasing a home and another 28 percent have not been able to contribute to their retirement savings. Another 18 percent have delayed getting married and 28 percent said they will be forced to wait when it comes to starting a family.

"The heart of the matter here is that young Americans need jobs in order to repay any debts, including student loans, and to plan for the future," said Paul Conway, Generation Opportunity president and a former Chief of Staff at the U.S. Department of Labor. "The poor economy and a lack of jobs are the central reasons why millions of young Americans have delayed their dreams of buying a home, getting more education, saving for retirement, getting married, or starting a family."

Some experts say that the young adults may also be forced to start out at lower wages than they would have years ago, leading to a permanent gap between the newly employed and those who have been employed in similar positions for a long period of time. As a result, young adults who are seeking employment may never catch up to those who have been employed for years.

Adults may face additional financing barriers

In addition to a slow job market many young adults who cannot pay their student loans may also face obstacles when it comes to securing a mortgage or auto loan. Missed or late payments on student debt can cause significant damage to borrowers' credit scores, making it difficult to qualify for competitive terms and rates. A low credit score, coupled with limited income and employment instability can lock millions of young adults out of homeownership opportunities.

As the real estate market struggles to repair itself, the inability of an up-and-coming demographic to secure financing may only hinder long-term growth and recovery. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/more-than-one-quarter-of-young-adults-cannot-afford-to-repay-student-loans-800639199.aspx Thu, 10 Nov 2011 15:24:39 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-let-divorce-hamper-your-finances-800639189.aspx Going through a divorce can be trying mentally, emotionally, and physically. But the process can also be extremely draining on your finances and it may take some time and effort to get back to where you were pre-divorce. The financial aftermath of your divorce can make it difficult to be optimistic that you will ever get your finances and credit back on track, but if you take a careful and proactive approach to your new income standards, you may feel more confident about organizing your accounts and setting new goals.

The divorce process can be a financial shock to both men and women, and experts say that looking for alternatives to hiring a litigation attorney can save both parties thousands of dollars in the end, Creditcards.com reports. Most attorneys charge by hour and couples who have a significant amount of assets involved may log a great amount of time with their respective attorneys. This excludes attorney's fees, court costs, and other related expenses. Instead, mediation and reaching an agreement between spouses can be a more financially feasible strategy for dividing assets, the news source explains.

It's also important to understand early on that any debt incurred by one spouse under a joint account may become the responsibility of both spouses, the website reports. For this reason, it's important to know what you and your soon-to-be-former spouse hold jointly in loans, credit card balances, and lines of credit and establish a repayment plan. Keep in mind that failing to pay the debt, regardless of who incurred the charges, will impact both of your credit reports and scores equally, so avoid ignoring the balances.

Once your divorce is final, establishing a new budget is crucial. Your income may not allow you to continue living the same lifestyle you enjoyed before, so make a list of your current living expenses and bills vs. your income. After you have determined how much you will need to set aside to pay for necessities, you should also carve out a percentage to put into a savings account and an emergency fund. Putting money into savings, even if it's only a small amount, can help you mitigate a financial emergency and start working toward new goals you have set for yourself.

Gender disparities

Divorce tends to hit women especially hard in some circumstances, namely because women are more likely to take time off to raise children or may choose to work part-time or become full-time homemakers, according to Creditcards.com.

"For women who have never supported themselves or who have dabbled at part-time work and volunteerism, taking full financial responsibility for themselves can be emotionally paralyzing," Rutgers University professor and author Debra Castaldo told the website. "I have worked with women in my practice who have never written a check, paid a bill on their own or balanced a checkbook."

Because women may be affected especially hard financially, it can be helpful to meet with a financial advisor or professional about the best way to proceed following a divorce. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-let-divorce-hamper-your-finances-800639189.aspx Thu, 10 Nov 2011 15:20:10 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/retirees-focus-on-home-during-golden-years-800639183.aspx Retirement brings about a number of life changes for adults, some more significant than others. One of the most common—and weightiest—actions an individual takes is switching up their living arrangements, whether it be downsizing to a smaller home, moving to a retirement community or settling into a new home located in their dream spot. However, the results of a new study show the most significant factor most retirees consider when making a change is the proximity to their families.

A new poll conducted jointly by LifeGoesStrong.com and the Associated Press reveals being close to family and children trumps living near other retirees their own age, with 73 percent of respondents prioritizing the former.

Although being near family was listed as the No. 1 factor by 50 percent of respondents when asked where they will end up during their retirement years, this does not denote that all boomers will stay in their current locations. Nearly a quarter said they plan to move to a new location when they enter their golden years and 13 percent said it's likely they will move across state lines.

"It's easy to understand why mid-lifers are interested in being near family and staying close to home during retirement," LifeGoesStrong.com guest contributor Barbara Corcoran said. "It's also important to note that most boomers currently live in a suburb, and that group is more likely to have lost money on real estate since the economic downturn began. But whether or not someone was directly impacted, the recession makes all of us more aware of the importance and comfort of a close family circle, and the value of strong home roots."

Some retirees plan to make changes to current homes

Many soon-to-be retirees said they are comfortable in their current home and plan to redecorate or make changes to their property now that their children are grown and gone. According to the study, many will convert their children's former bedrooms to new rooms that fall in line with their retirement lifestyle.

For example, 58 percent said they will turn their kids' rooms into a guestroom, and another 39 percent said they will use the space as a home office. Twenty-eight percent plan to re-do the space as a craft room, while 15 percent will use the space to entertain friends, family and guests.

While many participants said they are happy in their current homes and prefer to utilize the space for different purposes, others are simply hesitant to relocate amid disadvantageous market conditions. Other factors, such as neighborhood amenities, longstanding friendships, access to medical services and community ties can also explain why many retirees choose to stay put during their golden years. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/retirees-focus-on-home-during-golden-years-800639183.aspx Thu, 10 Nov 2011 15:17:11 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/financial-security-is-only-one-component-of-a-happy-retirement-800639171.aspx Most Americans are familiar with the old adage, "Money can't buy you happiness," and when it comes to enjoying their golden years, most retirees say this is true. A group of retirees who were recently polled by the Consumer Reports National Research Center say a happy retirement involves many different factors, ranging from a healthy nest egg to good health and close friends.

Financial health is a strong factor in enjoying a comfortable retirement, but the study shows that after a retiree has reached a certain savings threshold, their satisfaction does not continue to increase. For example, a retiree who has saved up $500,000 may maintain the same level of comfort and happiness as an individual who has saved twice that amount, according to Consumer Reports.

In addition, many retirees contribute their retirement happiness to having friends, outside interests and hobbies to fill their days. Weak friendships and limited hobbies were strong regrets many retirees noted, which put a damper on their retirement satisfaction. For example, 19 percent of participants polled said they regret not maintaining long-term friendships or establishing interests to enjoy during their golden years. Individuals who had no regrets in this category reported a higher rate of satisfaction than those who had one or two of these regrets at 73 percent vs. 45 percent, respectively.

Consumer Reports director of survey research noted that friendships, hobbies and activities were actually "The single best predictor of overall satisfaction with retirement."

The flip side

Although financial well-being is not listed as the No. 1 indicator or contributor of a happy retirement, those retirees who have fallen behind on saving or lost a sizable portion of their retirement income have a pessimistic view of their golden years, according to a new poll conducted by Americans for Secure Retirement. Experts attribute the uncertainty and anxiety to continued high unemployment, market instability, economic volatility and political grappling in Washington. In addition, proposals to cut Medicare and Social Security have only fueled retirement security fears.

Eighty-eight percent of respondents say they are concerned about being able to "Maintain a comfortable standard of living during retirement," with 52 percent saying they are "very concerned." http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/financial-security-is-only-one-component-of-a-happy-retirement-800639171.aspx Thu, 10 Nov 2011 15:08:12 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/affluent-foreigners-purchase-more-us-properties-800639163.aspx Some Americans may be considering whether to take advantage of historically low mortgage rates and purchase a home, while others have downright turned their backs on the housing market in favor of renting. But Americans are not the only ones keeping an eye on favorable conditions, and many wealthy foreigners are beginning to look at U.S. properties as popular, affordable investments.

The 2011 Profile of International Home Buying Activity report released by the National Association of Realtors reveals the percentage of U.S. homes purchased by foreigners for the 12-month period ending in March 2011 increased 24 percent, climbing from $66 billion to $82 billion.

Foreigners are flooding the U.S. real estate market for a number of different reasons, according to the report. Twenty-one percent see U.S. property as a secure investment, while 27 percent believe U.S. property assets represent a profitable investment. Another 43 percent of foreign investors purchase property in the U.S. because it is a desirable location for work, education, or vacation.

However, the report also reveals that only 37 percent of foreign buyers plan to use U.S. properties as their primary residence. Sixteen percent plan to use residential property as an investment location while another 28 percent will use residential homes as a vacation home for friends and family. Only a small number of buyers—4 percent—purchased commercial rental properties for investment purposes.

Senate bill may boost international interest in U.S. homes

Foreign buyers have poured a significant amount of money into the ailing housing market and a new senate bill may encourage a spike in the sale of U.S. homes. A new proposal, co-sponsored by Senators Charles Schumer of New York and Mike Lee of Utah, would grant foreign buyers U.S. visas if they make residential home purchases of $500,000 or more, according to CNN Money.

In addition, buyers would be required to pay U.S. taxes, remain in the country for 180 days out of the year and would be prohibited from working in the U.S. or taking out equity loans against their property, CNN Money explains. By meeting these requirements, buyers be allowed to reside in the U.S. for three years.

Some lawmakers believe the bill will boost the U.S. housing market and overall economy. In addition, many foreign buyers pose less of a risk to lenders because most affluent individuals pay in full with cash, the news source reports.

While the bill, if passed into law, may spark new home purchases, the benefits may be limited to foreigners with the financial means to pay for a home upfront. The NAR report reveals many potential investors have avoided purchasing U.S. properties due to the complicated credit system and a lack of understanding about the loan process. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/affluent-foreigners-purchase-more-us-properties-800639163.aspx Thu, 10 Nov 2011 15:05:08 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/renters-may-pay-more-for-an-apartment-800639151.aspx Many Americans eager to save money and avoid debt turned to renting apartments rather than taking on a mortgage after the housing bubble burst in 2007. However, adults may see a reversal of the low rental prices they enjoyed as apartment values and a demand for tenancy rise, new data shows.

A large number of Americans are avoiding the housing market currently for a number of reasons, despite record low mortgage rates. Some were forced to turn to renting after losing their home to a foreclosure, while many other Americans are apprehensive about taking on a mortgage in an unstable market. More still are unable to qualify for home loans due to lenders' tight credit and income standards. These factors have all caused a sharp demand for more rental units, prompting apartment values—and rent rates—to spike significantly, according to The Wall Street Journal.

Data from real-estate research firm Reis show rent prices have increased in nearly all areas of the country, despite high unemployment rates and financial hardship, the Journal reports. In the third quarter of this year alone, rent prices in most areas have increased 2.3 percent from one year prior, climbing to an average of $1,004, the newspaper adds. Nevada was one notable exception in which rent rates actually declined during this period.

High rental demand to continue

Experts say that the demand for rental units is likely to increase in the coming years, as economic uncertainty and a steep drop in homeownership may turn more households away from the housing market. Data from the Census Bureau reveals homeownership dropped from 66.4 percent in the first quarter of 2011 to 65.9 percent in the second quarter. This figure is down from 66.9 percent recorded in the second quarter of 2010.

Experts say each 1 percent decline in the rate represents roughly 1 million households who have moved from owning a home to renting a unit, the Journal reports.

Some experts are skeptical that the high demand for rentals will continue, especially if another recession leads to job loss and financial hardship. Some professionals say many households may double up with family members to avoid high rent prices, while others believe low mortgage rates may eclipse rental costs. The Summer 2011 Rent vs. Buy Index released by Trulia shows owning a home is more affordable than renting in 74 percent of U.S. cities. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/renters-may-pay-more-for-an-apartment-800639151.aspx Thu, 10 Nov 2011 14:59:47 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/a-step-by-step-process-to-purchasing-a-fannie-mae-home-800635837.aspx Properties that are owned or guaranteed by Fannie Mae are shrinking in number as the government-backed agency takes steps to sell off its real-estate holdings to consumers and investors. Low rates and incentives provided by Fannie Mae have made its properties more appealing to both demographics, but the process involved in purchasing one of the coveted homes is more complicated than buying from a traditional lender.

It's important to first understand that Fannie Mae itself does not directly sell homes, requiring potential buyers to work with a real estate broker, according to The Washington Post. In addition, investors and consumers can view a list of homes being sold by Fannie Mae by visiting HomePath, the insurer's home listing website, to seek out details regarding each property in Fannie's inventory.

The initial process

Fannie Mae services both consumers—called owner occupants—and investors, but the former may have a little more time to convey interest and get the process rolling. Owner occupants can seek out properties through a "first look" program, which gives them 15 days to start the home buying process before the listing will be opened up to investors and other buyers, the Post reports.

However, owner occupants must agree to move into the home, which will serve as their principal residence, within 60 days of signing the contract and must live in the home for at least one year, the Post explains.

Individuals must then submit a written purchase offer and 13-page addendum (which can be found online) in order to be considered an applicant, the newspaper reports. The addendum is pivotal because it lists the terms and conditions of purchase and outlines some of the traditional protections that may not be included in a homebuyer's contract.

Other considerations

Fannie Mae is currently trying to incentive purchases by offering benefits to prospective buyers, such as 3.5 percent credit toward a buyer's closing costs, the newspaper reports. However, buyers should still consider the same financial factors that they would take into account when purchasing a home from other lenders.

For example, experts discourage buyers from taking on a mortgage that imposes payments exceeding 28 percent of a homeowner's take-home pay. Excessive mortgage payments can put financial strain on families and increase the risk of default or foreclosure down the road. In addition, homebuyers should also consider how long they plan to stay in one location, as the current real estate market may make it difficult to sell the property in the near future.

In addition, many Fannie Mae homes are not in the best shape, meaning that the mortgage guarantor is not required to make home repairs or maintain the property before it is sold, the newspaper adds. This places a heavy burden on prospective buyers to have the home inspected and determine whether the costs of repairs and upgrades falls within their budget. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/a-step-by-step-process-to-purchasing-a-fannie-mae-home-800635837.aspx Mon, 07 Nov 2011 13:32:41 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/mortgage-rates-slowly-creep-back-up-800635825.aspx Mortgage rates attached to both 30-year fixed-rate and 15-year fixed-rate loans reached historic lows in previous weeks, a trend the government hoped would spark new home loan applications and repair the battered housing market. Last week, however, interest rates for 30-year fixed-rate loans spiked above the 4 percent mark, bringing an end to speculation that rates would continue to decline.

Average interest rates on 30-year fixed-rate mortgages climbed to 4.11 percent for the week ending October 20, according to Freddie Mac. Although this percentage is down from 4.12 percent recorded the previous week, it is still a spike from the 3.94 percent seen during the first week of October. Rates for 15-year fixed-mortgages also climbed from 3.26 percent recorded during the first week of this month to 3.38 percent for week ending October 20.

Rates for 30-year and 15-year FRM are still lower than they were this time last year, where they sat at 4.21 and 3.64 percent, respectively.

Low rates fail to repair housing market

Record low mortgage rates have not been enough to drive Americans to re-enter the housing market and many economists predict that outside factors will continue to depress new home sale applications. The largely unchanged unemployment rate has made it improbable for millions of Americans to demonstrate sufficient income to buy a new home. In addition, tight lending standards have made it difficult for even the most financially stable household to qualify for a competitive loan. Lastly, many Americans are fueling their money into safer wealth-building vehicles, such as savings accounts, certificates of deposit and other low-risk investments.

Other prospective buyers or current homeowners may also be waiting to make a purchase or refinance their existing terms in the hope that rates will continue to fall lower, according to Bankrate.com.

"I talked to a guy yesterday who still thinks he should wait a little longer because he believes the 15-year will reach 3 percent," WCS Funding Group mortgage banker Michael Becker told the news source. "Who knows? Maybe it will. It's so hard to time the market."

Many analysts predict home sales in 2011 may be the worst on record in 14 years, according to The Associated Press.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/mortgage-rates-slowly-creep-back-up-800635825.aspx Mon, 07 Nov 2011 13:25:11 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/401k-withdrawal-rule-for-foreclosure-may-change-800631775.aspx There are many different avenues distressed homeowners often take to prevent foreclosure, ranging from home loan modifications to lender mediation. But some opt to tap into their retirement savings early to come up with the income they need to pay their overdue mortgage and save their homes.

This strategy is most commonly referred to as a hardship withdrawal, an early distribution from a 401(k) account to cover certain eligible costs under current IRS guidelines. A recent Fidelity Investments report shows the percentage of 401(k) participants who took out a hardship withdrawal increased from 2 percent in 2009 to 2.2 percent in 2010, hitting a 10-year record.

"The majority of participants continue to make saving through their workplace plans a priority," said James MacDonald, Fidelity Investments workplace investing president. "However, the current economy has forced some workers to borrow from their 401(k) accounts in order to pay for critical living expenses, ultimately jeopardizing their future retirement."

However, workers who take out a hardship withdrawal are hit with heavy penalties, ultimately depleting the amount they have requested or requiring them to withdraw more from their retirement savings than they initially planned. Early distributions are not only taxed by the company that administers the 401(k) account, but also the IRS, which levies a 10 percent tax penalty.

New bill proposal

Under a new proposal co-written by Senator Johnny Isakson and Representative Tom Graves, both of Georgia, homeowners who take out a hardship withdrawal to avoid foreclosure on a primary home would be exempt from the tax penalty. The legislation, known as the Home Outlays to Protect Mortgage Equity Act or HOME Act, would allow distressed homeowners to make a hardship withdrawal of up to $50,000 to be used to modify their home loan, resolve a mortgage delinquency or cover financial issues that resulted from a drop in household income. The amount individuals take out must not exceed 50 percent of their overall retirement savings. In addition, homeowners would be required to use the funds within 120 days.

The bill, introduced on October 5, is currently being read and discussed by Congress. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/401k-withdrawal-rule-for-foreclosure-may-change-800631775.aspx Tue, 01 Nov 2011 11:36:13 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/a-poor-economy-may-lead-to-a-permanent-wage-decrease-800623908.aspx Being jobless in America is difficult in this ailing economy, and many unemployed Americans who are unable to find work in a timely fashion are taking on temp positions, minimum wage jobs or other initiatives to get by. Now experts are saying that those who do manage to find a full-time permanent position may be returning to the work force to find their wages permanently cut, according to CNN Money.

Although industry professionals agree that small pay cuts are common for individuals who are unemployed and return to work, analysts also say that the wage reduction gap is more pronounced for workers who were laid-off during periods of economic turmoil, the news source explains. Given the severity of the jobless crisis, this could mean significantly reduced wages for a large portion of America's potential work force.

A recent report released by the Brookings Institute shows 75 percent of workers who were with the same company for three years and were laid off during an economic downturn were still making less money than they previously were 20 years after the fact, CNN reports. When comparing the lifetime wage losses of workers who lose their job in a good versus bad economy, the data reveals a discrepancy of 10 percent versus 19 percent, the news source adds.

Other factors

Many seasoned workers who were laid off during the recession focused less on pay cuts, and more on whether they will be competitive enough to secure employment at all. This fear is largely because many companies have a wide array of candidates to choose from and many young adults who are fresh out of college can be trained to a company's standards and may be willing to work for less.

Even so, experts say that young adults who are starting off in a bad economy may also face obstacles when it comes to securing a higher starting wage than what they would have received if they found a job in a thriving economy. As a result of starting with a lower income, it may take young adults more time to establish adequate savings, curb debt and build a solid financial foundation. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/a-poor-economy-may-lead-to-a-permanent-wage-decrease-800623908.aspx Fri, 21 Oct 2011 12:05:29 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/being-single-can-jeopardize-your-retirement-savings-800623902.aspx Adequate retirement savings has become a highly discussed topic in recent months as a number of studies suggest Americans of all ages are not contributing enough to these accounts. A new study conducted by Charles Schwab presents a new perspective however, by revealing the age is not the only factor that impacts how aggressively Americans save for retirement, but also whether or not they are married.

The results of the study show single and divorced Americans are not investing as much attention and time to retirement planning as they should. Eighty-five percent of married participants say they are putting away money for retirement, while only 67 percent of single individuals reported they are planning ahead. In addition, 38 percent of married individuals say they are confident about their nest egg planning, while only 32 percent of their single counterparts expressed the same sentiment.

"At a time when the number of single adults is at a historical high in our country, our survey shows that this group has ground to make up in terms of retirement readiness," said Charles Schwab senior vice president Carrie Schwab-Pomerantz. "But regardless of marital status, there are some fundamental steps that all Americans can take to get better prepared, including starting to save as early as possible; creating a long-term saving and investing plan; and for many people, enlisting the help of a professional who can help navigate some of the more complex issues such as tax implications and estate planning."

Recent Census Bureau data shows there are roughly 100 million single Americans in the United States.

Planning ahead

Although single and divorced Americans may face different financial challenges or income restrictions than married couples, experts say there are a number of strategies they should adopt to build a sufficient nest egg.

First, singles should save a concrete and adequate portion of their income, which translates to between 10 and 25 percent of their paychecks, Daily Finance reports. Accrued interest adds up during a 30- to 40-year period and the sooner individuals start putting a percentage of their income away, the more they will have when it's time to retire. In addition, workers can save more by living below their means and avoiding financial behaviors that lead to excessive spending or debt. These habits can leave little for retirement savings and jeopardize their ability to meet their future needs.

In addition, there are other financial tactics that go hand in hand with building a healthy retirement fund. For example, starting an emergency fund to cover unexpected expenses can prevent adults from being forced to drain retirement accounts in the event of a sudden repair or medical issue, the news source reports. And speaking of medical issues, purchasing a long-term care insurance policy or participating in a similar program can help absorb the costs of covering medical and health issues down the road that may eat into retirement savings. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/being-single-can-jeopardize-your-retirement-savings-800623902.aspx Fri, 21 Oct 2011 12:01:24 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/older-women-who-plan-ahead-are-less-apprehensive-about-their-nest-eggs-study-shows-800623899.aspx Men have been traditionally dubbed as being more confident, aggressive and creative about their retirement planning. However, a new study shows that older women between the ages of 50 and 70 are running a close second and quickly becoming more assured in their retirement planning, despite facing additional risks and vulnerabilities.

The survey, conducted by the MetLife Mature Market Institute, reveals that women who are informed and aggressive about retirement planning and make contingency plans that take into account gender-specific risks, are more confident in their nest eggs than women who fail to take a proactive approach.

Most women plan for their golden years, but some may not consider certain factors that could derail their savings and retirement income. For example, women, in general, face limitations that are gender-specific, such as longevity, widowhood, income gaps and greater healthcare costs, according to the report. In addition, women who take on care-giving responsibilities for ailing spouses, parents and relatives may drain more of their income performing these services. As a result, experts say it's crucial that women take a more calculated approach toward financial planning.

"The combination of risks for women and their relatively inadequate retirement planning has become known as the 'perilous paradox,' but the message is clear that women are able to avoid that," said MetLife Mature Market Institute director Sandra Timmermann. "The risks and costs of 'living long and living female' call for an 'affirmative action' plan. We find that those who plan for a steady stream of income, along with some flexibility for the unexpected, are best prepared for what can be an extended future."

Better retirement planning strategies

Experts say that women who are adequately preparing for retirement should meet with an advisor who takes unique gender issues into consideration, according to the report. In addition, planning ahead for health-related issues by considering long-term care insurance or other health programs can help women safeguard their retirement income. It's also important to take sole survivor Social Security benefits, life insurance proceeds, annuities and other sources of income into account when playing out different retirement scenarios.

Lastly, experts say it's important that women plan for their unique circumstances, spending and lifestyle habits and needs, rather than relying on a generic savings formula. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/older-women-who-plan-ahead-are-less-apprehensive-about-their-nest-eggs-study-shows-800623899.aspx Fri, 21 Oct 2011 11:56:37 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/record-low-rates-not-enough-to-spark-increased-home-sales-800620632.aspx Mortgage rates have been progressively dropping to new lows, giving Americans households a unique opportunity to take advantage of affordable home purchases and refinance agreements. But the most recent figures from the National Association of Realtors shows most individuals are still shaky about the economy and housing market, and are turning their backs on the mortgage industry.

Data from the NAR reveals the number of pending home sales declined 1.2 percent in August, another decline from the 1.3 percent drop seen in July. Despite the index decline, analysts say the figures are higher than they were in August 2010. However, economists think the lackluster job market, flailing economy and struggling housing market will continue to weigh on Americans and discourage homeownership.

"With the job market also foundering, there is every reason to think more buyers opted for the sidelines," senior economist at Moody’s Analytics, Ryan Sweet told Bloomberg. "The fundamentals also point to a difficult month for sales, even though mortgage rates have come down appreciably."

Although unemployment remains a considerable factor in the slowdown of pending home sales, analysts also point to tight lending restrictions that are excluding qualified buyers from participating in the market.

"We continue to experience a pattern in which financially qualified home buyers, willing to stay well within their means, are being denied credit—a factor in elevated levels of contract failures," said NAR chief economist Lawrence Yun. "Based on the improving fundamentals of population growth, some job additions, rent increases and higher stock market wealth, we should be seeing existing-home sales closer to 5.5 million, but are expecting just over 4.9 million this year. The unnecessarily restrictive mortgage underwriting standards are attenuating the housing recovery and are a risk factor for the overall economy."

Other factors

There are a number of tangible financial factors that are inhibiting many households from actively participating in the housing market, but there is also another reason many economists are pessimistic about an uptick in pending home sales: declining consumer confidence. The Conference Board Consumer Confidence Index fell sharply in August to 45.2 and remained nearly unchanged in September, rising only to 45.4. Until consumers feel more stable in their own personal finances and economic recovery, big-ticket purchases, such as a new home, are likely to remain low. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/record-low-rates-not-enough-to-spark-increased-home-sales-800620632.aspx Tue, 18 Oct 2011 07:48:07 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/hiring-a-real-estate-agent-can-help-secure-a-housing-investment-800618417.aspx Individuals looking to buy a home or rent an apartment generally use the internet for their initial real estate searches. However, when it comes time to visit and buy a property, buyers tend to acquire the services of a real estate agent, Bankrate.com reports.

Inexperienced, first-time buyers most likely don't know enough about the housing market to make sound decisions on their own. Moreover, they probably aren't buying the house of their dreams for their first home, and may end up searching for the cheapest deal, instead of investing in a quality property, Ben Hoefer, a Seattle-based agent told the news source.

By involving a real estate agent, Hoefer notes they will factor in an abundance of details when assessing a property, which may have been overlooked if the homebuyers were to carry out the purchase on their own. For instance, the resale value, future of the market, structural and aesthetic issues, as well as location are all calculated by a real estate agent to give the clients a better idea of the true worth of a property.

Mark Lesses, a real estate broker in Arlington, Massachusetts, told the news source he first tries to understand what the potential buyer is looking for before presenting them with a property, and then if the client is unimpressed with a home, he assesses why they don't like it. Instead of showing the consumer properties ad nauseam, he adjusts his approach based on the consumer's needs and brings them to estates they're more likely to appreciate.

Agent Brian Block, said the most vital responsibility of a real estate agent is creating a good deal for the homebuyer and informing them of the market value.

"First-time buyers should rely on their Realtor to provide them with data about comparable homes that have sold, how long a home has been on the market, what homes haven't sold and all the activity that has been happening in the local real estate market," Block told the news source. "Ultimately, it is the buyer's decision what price and terms they wish to offer. However, buyers should be able to rely on their Realtors to guide them toward an educated offer on the home."

It is recommended for buyers to get an inside track on the housing market through nternet searches. A homebuyer should first get an idea of the type of home and location they prefer, and then present examples to the real estate agent so they can compare those examples with the available market.

In addition to finding an affordable and sustainable property, a real estate agent will guide the client through the process of signing necessary documents and reviewing home maintenance issues to consider following a purchase. Buyers may be more likely to get a more valuable long-term investment if they use a real estate agent, as opposed to working on their own. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/hiring-a-real-estate-agent-can-help-secure-a-housing-investment-800618417.aspx Thu, 13 Oct 2011 16:43:32 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/housing-market-remains-flat-800618335.aspx New-home sales declined for the fourth straight month in a depleted home real estate market, CNNMoney reports.

New homes sold at a seasonally adjusted annual rate of 295,000 in August, which is a 2.3 percent drop from July, when 302,000 homes were sold, according to the U.S. Census Bureau. Last month's sales were 2,000 higher than economists' projections.

Ian Shepherdson, chief economist at High Frequency Economics, stated the recent trend in the housing market has leveled off, with sales static around 300,000 per month, which is an 80 percent drop from the industry's peak.

Sales from August of 2011 were 6.1 percent higher than the same time last year, and housing prices in the United States are expected to end a five-year decline, but a complete recovery could be years away, International Business Times suggests.

Paul Dales, analyst for Capital Economics, said that a consistent lull in housing demand will ensure a slow recovery even when prices finally rise. Sustained price gains won't happen until 2014 at the earliest, according to Dales.

From June to July, the S&P/Case-Shiller 20-city home price index revealed that house prices in the United States climbed nearly 1 percent. In addition, the unemployment rate has remained hovering around 9 percent and wage growth is minimal. The status of the housing market relies heavily on the employment rate and wealth of the economy.

The current economic situation is causing continued financial problems. KRC Research conducted a study and found that approximately 33 percent of Americans wouldn't be able to pay their rent or mortgage for a month if they became unemployed, let along save for retirement. In a crippled economy, such as the United States has, and with companies cutting costs to stay afloat, losing a job remains a significant worry for some.

Recently, the federal government laid out the American Jobs Act, which the President encouraged Congress to pass immediately. However, some analysts suggest the plan is only a temporary fix and won't help the United States in the long run.

"The Fed has a few limited options at its disposal, but nothing that we think would make any significant difference to the economic outlook," Dales said. "The unemployment rate is likely to remain close to 9 percent and real disposable income growth will remain low."
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/housing-market-remains-flat-800618335.aspx Thu, 13 Oct 2011 16:27:58 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/resist-the-urge-to-overly-diversify-investment-portfolios-800613788.aspx The general rule that most investment advisers harp on is the need to diversify your portfolio, and it makes logical sense. Diversification allows you to mitigate your risk during periods of market volatility by spreading out your investments across a broad fund base.

However, finding a healthy balance between diversifying too much or too little can be difficult because it largely depends on the type of funds that make up your portfolio. You may be familiar with the risk you undertake when you place too much faith in a small class of funds, especially in these volatile times. But experts are saying that you are also taking a risk when you spread yourself too thin, according to CNN Money.

"Others look around at the plethora of investments available today—mutual funds that track every sector of the markets, ETFs that give entrée to precious metals and commodities, hedge funds that employ all manner of arcane strategies—and think diversification means helping themselves to every course on the smorgasbord," CNN Money's Walter Updegrave explains. "But these investors often end up with a disorganized hodgepodge of investments that can be difficult to manage and expensive to maintain."

Finding the right strategy

The truth is there is no "one-size-fits-all" strategy to allocating your assets, but educating yourself on your particular funds and adhering to your own tolerance for risk is a step in the right direction.

If you're investing in mutual funds or ETFs, you have a number of different options and strategies to choose from, so it's important to understand how the funds have performed in the past. While the market can shift at any time, previous performance reports can be a useful indicator of a fund's patterns and volatility in the market, the news source reports.

In addition to understanding your current allocation, you may benefit from researching other asset classes to determine if they fall in line with your investment goals and risk tolerance. This can be especially helpful if you are toying with the idea of diversifying your portfolio further, namely because it allows you gauge the additional risk you are taking on and think critically before reallocating your investments. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/resist-the-urge-to-overly-diversify-investment-portfolios-800613788.aspx Fri, 07 Oct 2011 11:33:14 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-rely-too-heavily-on-generic-retirement-tools-800613787.aspx Retirement planning is no simple task, and advisers will encourage you to take a number of financial factors into account, ranging from home equity, investments and savings to debt, Social Security and insurance.

The sheer number of components at play can make even the most financially adept adults anxious over whether they are handling their nest egg adequately, and planning resources, such as retirement calculators are popular tools to help you gauge your needs. Although most retirement advisers agree that calculators, as a planning tool, have some merits, many discourage adults from relying too heavily on them while planning their nest egg, according to CNN Money.

Retirement calculators allow you to input financial data that is unique to your situation, which can provide you with an estimate of how much you will need to accumulate to live comfortably in retirement. But it's important to keep in mind that the calculations you come up with are only estimations and do not take into account unexpected events, such as an illness, debt or other type of financial calamity. In building your retirement plan around the figures given to you from a retirement calculator, you may put yourself at financial risk of being unprepared for unpleasant surprises.

Lower your financial vulnerability

Retirement calculators can still be a useful too, but industry experts encourage you to input a range of different financial scenarios to gain a better overall picture of how much you should be saving, CNN Money reports. This involves plugging in different savings rates, investment returns and your monthly contributions.

Further, using different types of calculators can help you gain more insight into different aspects of your retirement. For example, utilizing the Social Security Administration's retirement estimator can give you an idea of the monthly benefits you can expect to receive based on the information you provide. Other types of calculators may focus more on how much your personal savings should grow in order to meet your target retirement date.

Lastly, retirement tools can only take you so far, so speaking with a financial professional about your savings plan, investment strategies and insurance needs can help you offset some of the limitations of calculators and other predictors.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-rely-too-heavily-on-generic-retirement-tools-800613787.aspx Fri, 07 Oct 2011 11:31:09 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/boomers-tailor-your-experience-to-each-job-prospect-800611762.aspx Finding a job in the current labor market is a difficult and tedious task, and many experts do not expect the high unemployment rate to significantly improve in the coming months. The ways in which you market your skills and experience is a pivotal factor in any job search, and a large demographic of Americans seeking employment are well-versed in this component of their job search.

For example, recent graduates often attend mandatory career counseling before graduation to help them prepare their first resume, and seasoned workers with years of experience under their belts have fresh skills and accomplishments to add to their employment profiles. However, job seekers in the baby boomer generation may face challenges when trying to re-enter the job market.

There are a number of strategies older adults can adopt to increase their chances of finding gainful employment, and experts say that tailoring their experience to each particular company can make a significant difference. The first place to start is with their resume, AARP vice president for financial security Jean Setzfand told Fox Business.

A common mistake lies in creating a generic resume that simply lists years of work experience in chronological order, rather than tailoring it to each specific job.

Keep it simple, but specific

"Keep your resume as simple and straightforward as possible, showing the value that you can provide to a prospective employer," Setzfand explains. "It is important that you put together a functional resume that emphasizes accomplishments, rather than a chronological listing of jobs and activities over the years."

In addition, the interview process may be the make-it-or-break-it moment in a job search, so it's important to be adequately prepared. Research the company, its goals and the culture of the group, Setzfand suggests. This can not only help prospective employees tailor their resumes and highlight accomplishments that will look appealing to the company, but also find weaknesses in their own skills or background that they can improve upon.

Along these lines, baby boomers may benefit from seeking out resources to keep their job skills current and competitive. For example, taking a computer or accounting software course, attending seminars or reading up on the latest industry trends can help adults feel more confident about their ability to perform new job tasks.

Staying afloat in the meantime

Sending out resumes, going on interviews and waiting for a response can be a stressful time, both emotionally and financially for baby boomers, especially those nearing retirement. But experts say it's crucial to adhere to a strict budget and retirement planning to feel more financially secure. Cutting back on unnecessary spending, chipping away at credit card debt and finding ways to stretch income can help boomers stay afloat financially. In addition, seeking the help of a retirement counselor or financial advisor may educate boomers on money management strategies of which they were previously unaware.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/boomers-tailor-your-experience-to-each-job-prospect-800611762.aspx Wed, 05 Oct 2011 12:03:44 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/mature-job-seekers-showcase-your-experience-800609734.aspx The current job market is making it difficult on job seekers of all ages, education, and experience levels to find gainful employment, but the older demographic is facing its fair share of challenges. If you're 50 or older, you may feel a heightened sense of urgency when it comes to securing a job because retirement is just around the corner and it's down to crunch time for boosting your retirement savings.

At the same time, competing with a large group of 20-somethings who are fresh out of college and willing to work for less money and fewer benefits can make the prospect of finding a position seem dismal, but it's important not to overlook unique characteristics that you can bring to the table.

When you're carrying 30 to 40 years of experience under your belt, you can save companies a great deal of money when it comes to training and educating. It's important to showcase the experience you have, talents you exhibit and other unique characteristics that differentiate you from other applicants, according to Fox Business.

"If you're applying for a financial position, you can find out what system of accounting the company uses and tell them about your experiences using [that system] at your last three jobs," CEO and founder of Jobs4Point0.com Steven Greenberg told U.S. News and World Report.

In doing so, hiring managers who are looking at piles of applications each day will see the value you can bring to the company and may be more willing to overlook higher salary negotiations.

Experience can bring you a long way in terms of securing employment, but companies are always looking for versatility and innovation, so it's paramount that you demonstrate your ability to learn new tasks as well, the news source reports. Boost your resume by signing up for and completing classes to enhance your job skills. Computer software courses, financial planning seminars and other workshops can make you more appealing to managers and also make it easier for you to transition into a new job role.

It's also important to seek out other outlets to network, highlight your strengths, and demonstrate your competency. Many employers rely on social networking websites to weed out and size up potential employees, so get involved on different websites and present your best side.

"As soon as an employer establishes an interest in you as a candidate, the first thing they are going to do is look you up on LinkedIn and Facebook," Ford Myers, president of Career Potential, told the Christian Science Monitor. "The second thing they are going to do is Google you."
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/mature-job-seekers-showcase-your-experience-800609734.aspx Mon, 03 Oct 2011 12:23:52 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/lower-your-financial-vulnerability-800595907.aspx Planning ahead for a divorce, death or medical condition that leaves you or your spouse incapacitated is unpleasant and few people like to make preparations for these types of life-changing events. But failing to plan for the unpleasant or unexpected can leave you financially vulnerable to the ramifications these events can have on what may be your most important and valuable asset: your real estate holdings.

When life changes occur, such as a marriage, divorce, death or disability, making sure your legal paperwork is updated can make a world of difference in safeguarding investment property, your home or vacation house. Taking the proper steps can influence a court's property settlement proceedings and play a heavy role in how a property inheritance is carried out, according to the Washington Times.

Locating property deeds and related real estate documents is the first step in making sure the information and legalities reflected in the paperwork are accurate. Attorneys commonly see simple errors in a homeowner's deed that could have dire consequences if not updated, such as a deceased individual being named as the property owner, the newspaper reports.

Title changes in property may also occur when one spouse who owns a home or condo with their husband or wife passes away. Depending on the manner in which the property ownership documents were set up, the other spouse may become the sole owner of the home. However, the legal terminology surrounding property ownership can be confusing for individuals who are not well-versed in property agreements, so meeting with a legal professional can help protect surviving spouses from losing their assets, according to the newspaper. The legal terminology attached to property agreements may have similar consequences for divorcing couples.

Don't forget about taxes

The current housing market has stunted home sales for most families, but individuals going through a divorce or death of a spouse may be more likely to sell their home in favor of a more affordable residence. Each state imposes a different tax code when it comes to selling or transferring property, so it's crucial to know the tax implications of your particular state. The proceeds of your real estate sale may be higher in some states than others, requiring you to plan your finances more prudently.

More importantly, estate planning should be a priority to ensure your family is well-cared for following your death. A recent report in CNN Money reveals that many individuals are turning to trusts as a way of ensuring their families are left with a significant amount of assets that are protected from estate taxes. Trusts are a trusted source of protection many individuals rely upon if they have significant real estate holdings, wish to leave a large portion of their estate to specific heirs or want to provide for a disabled loved one without disqualifying him or her from social benefit programs, CNN Money reports. Because trusts can be flexible and comprehensive, you may consider turning to this strategy to better protect your real estate assets from falling into the wrong hands. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/lower-your-financial-vulnerability-800595907.aspx Wed, 14 Sep 2011 12:58:19 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/help-elderly-parents-avoid-unfavorable-investment-products-800587246.aspx Financial abuse committed against the elderly is more common than most people realize, and in the worst of cases, pushing retirees toward risky or dangerous investments and products can lead to ruin. The tactics used by some professionals to entice retirees into making transactions not in their best interest are not always illegal—albeit unethical—and therefore this type of abuse receives little attention.

Statistics from a 2010 Investor Protection Trust study show one in every five older adults has been misled into investing in a dangerous or unfavorable investment, or paid exorbitant fees for products and services, CNN Money reports. This statistic also includes a small number of Americans who have been the victim of downright fraud. A separate study conducted by the North American Securities Administrators Association revealed 44 percent of 2007 investor complaints nationwide were submitted by seniors, up from 28 percent in 2005.

"Only the lowest of the low intentionally seek to deprive retirees of the savings they have worked so hard, for so many years to accumulate," said NASAA President and Alabama Securities Commission Director Joseph Borg.

Elderly make prime targets

Retirees and older Americans are typically more vulnerable to financial scams and ill-advised investments because they are targeted more aggressively and are more open to sales pitches, according to CNN Money.

Most adults have accumulated wealth in the form of investments, savings, retirement accounts, home equity and tangible assets. As a result, these groups are often more enticing to financial professionals and scammers. In addition, some retirees who are pushed into investing in or purchasing a product may feel overwhelmed and avoid conducting thorough research on the product.

Additionally, it's simply easy for unethical professionals to encourage the elderly to make these transactions without facing legal action or being held responsible for the negative financial ramifications that may befall the investor. Most of these individuals can lure unsuspecting seniors into risky pitches by providing free lunches followed by convincing presentations and promises of high gains.

"Promoters often use the promise of a free meal to lure potential clients to hear pitches of unsuitable or questionable investments," Borg said. "Remember, there's no such thing as a 'free' lunch."

Protecting the elderly

Many young adults are taking more strides to help their parents avoid these aggressive marketing tactics, and most strategies involve compiling their own research, staying involved in their parents’ social lives and accompanying them on any sales or investment meetings. In addition, many seniors get roped into risky investments due to their own fears about their financial condition or how they will pay for medical care down the road, CNN Money reports. Children can take a more direct approach to protecting their parents by addressing their concerns and working out a plan to ease their anxiety.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/help-elderly-parents-avoid-unfavorable-investment-products-800587246.aspx Wed, 31 Aug 2011 11:55:56 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/weigh-your-401k-options-when-leaving-your-job-800585963.aspx Leaving your job requires you to make some tough decisions about your employer‘s sponsored 401(k) account, and understanding the implications of each option can help you make the best choice. Prior to leaving, most employers will provide their workers with a set amount of time to determine what to do with their 401(k), and during this time it's crucial to explore every alternative. Employees have four primary options:

Leave the money where it is

If you're happy with the investment allocation at your former company, you may benefit from leaving your 401(k) behind and allowing it to continue growing. You will not face tax issues by leaving your funds where they are. However, leaving your money behind also means forfeiting the right to access your previous employer's financial services or re-allocate your investment, according to U.S. News and World Report. Consider your retirement goals and future objectives before leaving your hard-earned money in the hands of a former employer.

If this is the route you decide to take, make sure you keep all account information in a file so that you can find and draw distributions from the account at a later date. This information can be helpful over the years if the company moves, changes names or merges with another business, according to Kiplinger.

Roll the funds over to a new account

If you feel more comfortable taking the reins on your retirement funds and the investments in which they are allocated, rolling your 401(k) into a self-directed individual retirement account may be an advantageous option. These accounts are likely to provide more fund options than an employer-sponsored 401(k) account, giving individuals more leeway in making their own investment decisions, according to U.S. News and World Report. However, it's important to understand the different investment vehicles, how they function and the risks and rewards involved before switching a 401(k) over.

Invest in a new employer's program

Individuals who begin a new position may also consider rolling their old account into their new employer's retirement program. However, it's important that workers are well-versed and comfortable with their employer's mixture of investment options, because once they have rolled over their money, they are locked into their employer's program, the news source cautions.

Cash out the fund

Cashing out your 401(k) is also an option, but most financial professionals caution against it. Taking a cash distribution would result in heavy taxes and an additional 10 percent early withdrawal penalty for individuals who are under the age of 59 ½.

Building a healthy retirement account is imperative to avoiding financial shortfalls during your golden years, so give strong consideration to each 401(k) option before making a decision. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/weigh-your-401k-options-when-leaving-your-job-800585963.aspx Tue, 30 Aug 2011 07:59:28 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/celebrity-money-matters-800576857.aspx
With more money comes more problems, or so the saying goes. One clear example of this is the number of celebrities who have found themselves embroiled in money trouble in recent years.

Superstars may be able to command multi-million dollar paychecks for their services and draw hundreds of thousands of screaming fans to see them perform, but if they cannot properly manage their finances, they may have little to show for their work, according to U.S. News and World Report.

Where does the money go?

Celebrities tend to live lavish lifestyles with high price tags. They also often travel with a financially dependent entourage including a string of relatives who are completely reliant on monetary support. As M.C. Hammer showed the world when he lost his entire fortune, being overly generous could wind up hurting everyone in the long run.

Steep child support or alimony payments can deplete a celebrity of large sums of cash very quickly. Former NFL running back Travis Henry has 11 children with 10 different women and is required to pay $170,000 a year in child support, the magazine reports.

Michael Phelps lost millions in endorsement deals when photographs surfaced of him using illegal drugs. Art icon Annie Leibovitz found herself in $24 million worth of debt due to poor investment choices. Michael Jackson was famously so deep in debt that he was forced to sell portions of his song collection and was still hundreds of millions of dollars in the hole when he died.

Paying taxes is also a major financial issue many celebrities overlook or try to avoid. Experts recommend that individuals with an enormous amount of money remember that when they receive a large paycheck, they are also taking on a large tax bill. When a star earns a $20 million paycheck, they may wind up owing close to $8 million of that in taxes, so running out to buy a $15 million house may be a costly mistake.

Find a way to say ‘No’

When individuals come into large sums of money, the distant relatives and old friends who come out of the woodwork looking for handouts can be surprising, and could wind up costing a significant amount of money. Experts suggest having a financial advisor on hand who can help manage the finances and also serve as a scapegoat. Being able to tell people that their advisor thinks it's a bad idea can take the pressure off and make saying no a little easier.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/celebrity-money-matters-800576857.aspx Tue, 16 Aug 2011 15:29:28 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-rush-into-picking-a-retirement-community-800574444.aspx Moving into a retirement community requires seniors to take a detailed look into their options, and experts agree that this process should not be rushed. Although some retirement communities may offer tempting amenities or low prices, it's prudent to look at the overall picture before making a decision.

Account for both good and bad

It's easy to overlook unpleasant features when seniors are inundated with a slew of amenities, but it's important to take a step back and really consider the pros and cons objectively, according to Bankrate.com. Having free access to a golf course all day sounds great in theory, but does it outweigh the cost of not having central air conditioning in 100-degree heat? Keep these options in mind when shopping around for the perfect community.

Understand the true cost

The overall costs of a facility, ranging from fees, living expenses, medical expenses and other expenses should be weighed carefully and critically before any decisions are made. Each individual may have a different retirement income plan, and it's imperative to ensure income levels match up with expenditures. In addition to the cost of living in a retirement facility, seniors need to have enough money to cover the costs of necessities, unexpected emergencies and financial goals, including vacations.

Meet the neighbors

Seniors will likely spend a great deal of time within their retirement community, so it's important to meet potential neighbors and get their take on the standard of living. Current residents can provide insight not listed in a community brochure and may also be able to answer questions that a community director cannot.

In addition, speaking with current residents on a personal level may bring seniors more peace of mind prior to moving into a community. Finding a new home that houses residents with similar interests can be invaluable. Retirement communities can be expensive and living in a facility with individuals and activities that meet a senior's interest may make them feel the money is well worth it.

Know when to say no

Individuals who have looked at a number of retirement communities and have not found "the one" may feel pressured to hurry and pick one, but this can be a mistake. A retirement community is where a senior will likely spend the bulk of his or her time and it should feel like home. If it doesn't, don't hesitate to keep searching.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/dont-rush-into-picking-a-retirement-community-800574444.aspx Fri, 12 Aug 2011 05:37:11 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/excellent-car-choices-for-a-road-trip-800518768.aspx Summer is right around the corner and even though gas prices may be reducing the number of people taking to the road for vacation, it still may be the cheaper means of transportation, according to the Salt Lake Tribune.

"While concerns over higher gas prices are causing some travelers to opt out of a summer road trip, many are modifying or scaling back in other types of vacation expenditures," auto expert Cynthia Harris told the newspaper. "Many people expect to stay with family and friends in order to afford a few days away from home."

Traveling in the right vehicle can make all the difference in ensuring the trip is a success. A station wagon or minivan may be perfect for the family travelers, while a young couple may want to cruise around in a convertible.

Kelley Blue Book recently released its top road-trip cars for 2011.

Younger drivers

For those students hitting the highways this summer, the 2012 Ford Focus is economically sound, allowing drivers with limited funds the ability to travel more freely, the report states. The car insurance rates on these vehicles also tend to be reasonable. For young people that are driving for stature, KBB recommends the hip 2011 Camaro Convertible.

As the dating scene becomes a top priority, or that special someone has finally been discovered, drivers may want to purchase the Audi A5 Cabriolet . Experts believe it is not a practical family car, so it may be now or never. 

Families

Once children start entering the picture, vehicles such as the Honda CR-V and Honda Odyssey may be exactly the type of car to assist in family preparedness . Children come with cargo, so more space is almost always needed when they arrive on scene.

Later years

After the children have flown the coop, and the midlife crisis sets in, KBB recommends the Chevy Corvette. For decades this American classic has been a favorite of middle-aged men who are less worried about car prices. For their female counterparts, the site states the Mercedes-Benz E-Class Cabriolet is an excellent choice.

Once the crisis years have passed, and people want to settle into a comfortable and reliable means of transportation, the Toyota Avalon can be a great option, according to the news site.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/excellent-car-choices-for-a-road-trip-800518768.aspx Tue, 31 May 2011 08:05:11 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/some-car-dealerships-using-unorthodox-promotions-to-attract-buyers-800493604.aspx The concept of buying a car from a "wacky" car dealer seemingly faded years ago. However, as fewer people have been buying cars due to the recession, a number of dealers are beginning to rely on wackiness to attract the few buyers out there, according to AOL Autos.

Creative selling techniques

According to the source, some dealerships have been going above and beyond to make buying a new car an "experience". 

The source mentions a number of unique promotions that have been running across the country. Franklin Sussex Auto Mall has hosted wild animals during a safari event, while the Checkered Flag Volkswagen in Virginia Beach has hosted a Buy a Car from a Rock Star event—during which car sales staff dress up and behave like famous rock musicians. Both dealers report their promotions have had a positive impact on sales.

Some other dealers have tried more traditional, but still unique and extravagant offerings, by providing new buyers the potential to leave with a significant amount of cash through raffles and different promotions. Either way, it seems many of the mainstream car brands need these promotions to spike sales during a difficult time for the auto industry.

"I don't think you will see too many Mercedes or Jaguar dealers hanging on a crane or shooting themselves out of a cannon," marketing consultant, Dennis Keene told the source. "But for mass brands like Hyundai, Kia, Chevy or Ford, it can work because when it's done right, it engages people to listen and pay attention to what you are selling."

Brands also coming up with unique promotions

Individual car dealerships are not the only ones coming up with unorthodox offers to get drivers to buy new cars. Major brands have also rolled out promotions which may be tough for some drivers to turn down.

Hyundai recently ended its assurance program started mid-recession, which allowed new car buyers to return their vehicles if they lost their job within one year of the purchase. However, Hyundai quickly replaced that program with a new promotion which guarantees drivers a certain trade in value for their vehicle if they turn it in either 2, 3 or 4 years after buying it, according to CNBC.

The Hyundai buy-back program allows drivers who maintain their recently purchased Hyundai at an authorized dealership to receive the greater of two values when they decide to turn it in—the predicted value they receive at the dealership when they make their purchase or the actual value of the vehicle at the time of the trade-in.

These types of innovative promotions are beginning to catch on in the auto industry and may become more popular in the competition for new buyers in the near future.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/some-car-dealerships-using-unorthodox-promotions-to-attract-buyers-800493604.aspx Tue, 10 May 2011 16:19:28 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/sponsoring-motorsports-may-lead-to-increased-sales-800500598.aspx Over the years, many car brands have participated in sports sponsorships with the hope that the fan base may become loyal customers. Motorsports competitions have been no exception, as a number of carmakers have chosen to showcase their brands in racing competitions such as NASCAR, Grand-Am, and Formula 1.

However, according to the Detroit News, the recession has taken its toll on many automakers, causing them to take a hard look at whether or not being involved in such competitions can actually help their sales, making them worth the sometimes hefty investment.

Formula 1 may cater to luxury market

According to the source, of many of the motor sports competitions in the U.S., Formula 1 may be one of the most expensive to participate in, despite having a smaller fan base than competitions such as NASCAR.

However, Infiniti has recently announced a sponsorship in the race. The source suggests this could potentially be beneficial for Infiniti, as the small Formula 1 fan base is primarily made up of a luxury crowd—the type that may be interested in and able to afford Infinitis.

Worthwhile investment for certain brands

Though the benefits of sponsoring racing competitions are sometimes questionable, Kia's recent sponsorship in the Grand-Am Sports Car Challenge may be paying off, the source says.

According to the source, vice president of marketing and communications at Kia Motors America, Michael Sprague, says the cost of the sponsorship is reasonable, particularly when compared to other major sporting event advertising, such as Super Bowl ads. CBS News reports Super Bowl advertisements in 2011 ranged between $2.5 and $2.8 million for a 30-second spot.

"It's not that expensive and people who watch the series on Speed Channel are influencing their peers in their offices and homes," he said. "We see a lot of chatter on Facebook and other social media about our involvement. It's a way to communicate directly with our customers."

In a time when many carmakers are going an extra mile to encourage consumers to buy cars, every bit of exposure may count, particularly when it sparks an online buzz. As technology is becoming a more integral part of everyday life, a number of carmakers have reported that social media campaigns and creating a sound web presence may have helped their brands during the recession.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/sponsoring-motorsports-may-lead-to-increased-sales-800500598.aspx Wed, 04 May 2011 22:41:32 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/aol-predicts-collectible-cars-of-the-future-800485226.aspx Collecting classic cars has been a thrilling pastime for many attracted to vintage vehicles that represent past generations. However, if some of those collectors' children were to continue the hobby of their parents, what cars would they be collecting? The classic cars of the future may be difficult to imagine, as they are still relatively modern now. However, AOL has ventured a guess as to what types of vehicles may be treasured and collected in the future.

What makes a car a classic?

For car lovers, the question of what makes a vehicle qualify as a classic has often been hotly contested. There are a number of variables that some believe are most important in warranting the exclusive designation, such as age, parts and appeal.

Some argue that the age of a vehicle is essential to determining classic status. Though some use the range between 25 and 45 years old as being the standard for a classic car, other groups, such as the Classic Car Club of America, have a more strict definition.

According to the group, full classic cars or CCCA classics are considered "...fine or unusual motor cars which were built between and including the years 1925 to 1948." They emphasize that "you won't find your Mom's '72 Plymouth Duster ... in the ranks of CCCA...they are not what CCCA is all about."

However, one concept found in most definitions is that the car must maintain an "appeal" even after it is no longer being produced, due to its engineering, craftsmanship, or other unique features.

Since these vehicles are older and may have parts that are no longer being manufactured, classic cars often require their own special auto insurance. An independent definition of "classic" is used to determine eligibility for vintage or classic auto insurance coverage .

AOL's choices as classic cars of the future

AOL has attempted to determine what vehicles will be left standing and will maintain the appeal to don the title of a "classic." Though these vehicles are all fairly recent, in 30 or 40 years they may gain the favor of collectors worldwide.

With such diverse perceptions of the definition of classic, AOL decided to consider the condition of cars. "Remember, in order for cars to draw top dollar at shows, they should have low mileage, be in wonderful condition (cars from states and climates that don't see winters or salted roads tend to do best over time) and have as much original equipment as possible," AOL says.

The cars they selected as potential collectibles in 2041 were:

• PT Cruiser (1999 to 2009)
• Plymouth Prowler (1997 to 2002)
• Dodge Viper (1992 to 2011)
• First generation Audi TT Roadster (1999 to 2002)
• Mini Cooper (2001 to 2011)
• BMW Z3 Coupe (1999 to 2002)
• Cadillac CTS-V Coupe (2011)
• Chevy Volt (2011)

These vehicles may eventually be worth their weight in gold. According to Forbes, some collectible cars sell for amounts well in the millions, including a historic Mercedes that sold for $20 million in 2008.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/aol-predicts-collectible-cars-of-the-future-800485226.aspx Thu, 14 Apr 2011 15:13:47 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/study-suggests-women-more-likely-to-buy-imported-cars-800485125.aspx Men are sometimes more closely associated with car ownership in society than women. However, recent research by the consumer marketing firm R.L. Polk shows that women are beginning to have a larger share in car ownership figures.

In addition to increasing ownership, ladies also seem to prefer imported car brands, according to the group's statistics. As the number of female car buyers grows, their influence on the auto industry may become more evident over time.

More women buying new cars

The number of female new car buyers is rising, according to R.L. Polk's statistics. The company found that about 38.5 percent of all new light vehicle registrations belong to women—a 2.5 percentage point increase from 2006.

The increase is steeper when the statistics are broken down between the industry average and that of ethnic women. Women from African-American, Asian and Hispanic households have a faster growing share of all new car registrations, reflecting a jump from 40.7 percent in 2006 to 45.4 percent in 2010. This 4.7 percentage point jump is not only higher than the industry average, but also higher than the increase in vehicle purchase share of ethnic men, the source says.

Auto makers favored by women

Judging by the registration information, R.L. Polk surmised that women tend to prefer imported cars. Based on passenger vehicle sales to women, Toyota and Honda came in first and second place. Together, the two Japanese carmakers make up approximately 1 of every 4 cars bought by women, the Chicago Tribune says. 

Aside from Toyota and Honda, which make up 15.7 and 14 percent of vehicles purchased by women, the research shows that 10, 8.9 and 8.8 percent of female-bought cars are Fords, Chevrolets and Nissans, respectively. 

As for brands with the highest share of female buyers, Mini has 47.9 percent, KIA has 46.8 percent, Honda has 46 percent, and Nissan and Subaru are tied at 45 percent.

Dependability, cost and size factor in

Dependability of the vehicles as well as vehicle size may influence the rankings. Many of the auto brands that recently placed in the top 20 in the 2011 J.D. Power and Associates Vehicle Dependability Study, including Toyota, Honda and Ford, were also among those frequently purchased by women.

According to 2008 rankings by Forbes the vehicle with the highest percentage of women drivers was the Honda Fit, with 80.46 percent female owners. The relatively small vehicle also ranked on Forbes list of least expensive vehicles that year, reflecting the potential that cost is an important factor for female drivers in addition to size. The Honda Fit was also the highest ranked sub-compact car on the recent Vehicle Dependability Study.

Though the influence female buyers have on the auto industry is increasing with their rising share of purchases, some say the industry has not yet made changes to accommodate and attract the demographic. The industry remains male-centered as, according to Forbes, 95 percent of the country's 20,000 car dealers registered with the National Automobile Dealers Association are male.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/study-suggests-women-more-likely-to-buy-imported-cars-800485125.aspx Thu, 14 Apr 2011 14:42:02 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/hyundai-wraps-up-customer-job-loss-assurance-program-800484741.aspx At the height of the recession, many auto makers introduced ways to make vehicles more affordable, including a host of discounts and other promotions. Hyundai decided to take a unique approach to making its vehicles attractive to consumers and remaining competitive during a time when many other car makers were struggling.

The company introduced a customer job-loss assurance program, which permitted those who lost their jobs within a year of purchasing a new Hyundai to return their vehicles. During a time of widespread job loss, the feature helped alleviate some of the uncertainty that may have prevented some consumers from buying a new car .

However, given recent improvements to the economy, the car maker announced its termination of the promotion on March 30, 2011.

Details of the promotion

Hyundai Assurance Plus was a job-loss protection program that allowed car buyers to return the vehicle if they became unemployed after buying it. The maximum benefit, according to Consumer Reports, was $7,500, meaning that if the difference between the car's value and the remaining low balance was higher than that amount, the customer was responsible for paying it down to that point.

The program was not only beneficial for those who were let go from their job. Consumer Reports says it also benefited those who "become physically disabled, lose their driver's license due to medical impairment, are self employed and file for bankruptcy, or get a job transfer overseas."

The potential success of the program was quickly noted and other automakers, such as GM, acted to replicate the program, the Wall Street Journal says. 

Positive for the company and consumers

According to the Wall Street Journal, Hyundai's efforts paid off. The number of individuals buying new cars increased, despite an otherwise suffering auto industry.

The news source reports Hyundai's sales rose 24 percent during 2010, which was more than twice the industry-wide gain, and the company was one of only three auto makers to have sales gains in 2009, with an 8.3 percent sales increase.

Additionally, a number of customers were able to take advantage of the program when they fell on hard times. Over the two years of the program, the company reports having taken back 350 vehicles.
According to Consumer Reports, despite the emergence of a number of job-loss protection programs modeled after the Hyundai concept, Hyundai remained the best deal, due to already reasonable auto prices.

Hyundai also recognizes the impact the program had on its brand.

"There is no doubt that the launch of the Assurance program in January of 2009 was a watershed moment for the brand ... The messaging strongly resonated with consumers and dramatically raised the awareness levels of our brand," Dave Zuchowski of Hyundai Motor America, told WSJ.

Hyundai terminated program as economy improves

Despite all the positive impact the program had, both for the company and its customers, Hyundai has announced that they will no longer offer the promotion.

"It's kind of a natural evolution and this wasn't something that was going to last forever," Hyundai spokesperson Jim Trainor told WSJ.

Demand for the program may have decreased, as the unemployment rate is lowering and recently reached 8.8 percent in March, according to the Bureau of Labor Statistics.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/hyundai-wraps-up-customer-job-loss-assurance-program-800484741.aspx Thu, 14 Apr 2011 09:17:13 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/small-engines-gaining-sales-but-suvs-trucks-still-popular-800474913.aspx Small engines have recently become more popular and are accounting for a larger number of car sales than they have in the past, according to the Wall Street Journal.

The source reports that a major factor behind the surge in the sale of four-cylinder engine vehicles is likely due to the widespread desire for energy saving cars , but also notes that the type of vehicle has become more widely available, from mainstream to luxury car makers.

Not just gas prices

Though the obvious reason for improving popularity of four-cylinder engines is increasing gas prices, this may not be the only factor according to the source. Much of the changes may be due to the fact that auto makers are reserving four cylinder engines for low-end vehicles. In order to maintain competitiveness in a struggling economy with rising gas prices, some automakers have intentionally improved the fuel-efficiency of some popular vehicles by producing four-cylinder models.

According to autoblog.com, four-cylinder engines powered more than 64 percent of cars made in 2010. Many individual car makers also saw sharp increases in their demand for four-cylinder-engine vehicles, such as Chevrolet, whose demand for the fuel-efficient engines has nearly doubled, according to USA Today.

Large trucks and SUVs remain car buyer favorites

Despite the increased focus on manufacturing small vehicles due to their cost-effectiveness, the source cites a recent study by Leastrader showing the percentage of car shoppers considering large SUVs and trucks has increased since 2008. The data reflects a 0.3 increase in shoppers considering large SUVs, 0.2 percent increase for those considering large trucks, and a 0.6 percent increase of people interested in premium luxury SUVs.

Some experts believe that the shift many car makers are making from focusing on larger to smaller vehicles may cause problems in the car market in the future.

According to the source, John Sternal, spokesperson for Leasetrader, said that "One thing we keep hearing is that Americans love their large vehicles." He noted that many people who had previously traded in their SUVs for small cars in 2008 have returned to larger vehicles. "With so many car makers shifting toward smaller vehicles, Sternal says one has to wonder if the market will wind up saturated with 'a lot of small cars that nobody wants.'"
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/small-engines-gaining-sales-but-suvs-trucks-still-popular-800474913.aspx Thu, 31 Mar 2011 08:54:10 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/rare-nissan-for-sale-800474899.aspx Former Nissan designer Bryan Thompson may be putting his 1990 Nissan Pao on the market, according to the New York Times.

The vehicle was previously housed in the Datsun Heritage Museum in Murietta, California - Datsun being the American name for the Nissan brand before 1984. However, the source says the museum recently had to close down, leaving Thompson with the decision to either lend the vehicle to another auto museum or put it up for sale.

"I just want the car safe and in good hands," Thompson told the source.

A rarity

Thompson told the source that the vehicle is very rare - one of only 10,000 built and one of a handful in America.

The New York Times says the vehicle was one of four limited-edition cars made by Nissan in the early 80s and 90s, known as Pike cars.

"They were collectively known as the Pike cars because they were intended to represent the spearhead of a new approach: adapting design and marketing strategies from other industries like personal electronics," the source says.
The French and Italian inspired cars could be thought of as "fashion accessories", according to the source.

Not for driving

Though Thompson's beloved vehicle is for sale, nobody will be driving away in it any time soon. The vintage vehicle has right-hand drive and does not meet American standards, according to the source.

However, other countries, such as Canada, do permit the sale and use of these vehicles. As long as the vehicle meets clean emissions standards and was manufactured within 15 years of its importation, it is legal to own and drive in Canada.

Kei cars

According to the New York Times, the Pao and other Pike cars are classified as kei cars in Japan. A kei car has a maximum length of 3.3 meters, maximum width of 1.4 meters and a maximum engine displacement of 660cc, Edmund's inside line says.

This type of small, light vehicle is popular because it is exempt from some regulations and taxes. Auto insurance coverage in Japan is also lower for this type of vehicle.

Though kei cars are not sold in America, they are credited as the forerunners of other small vehicles, such as the Volkswagen New Beetle and the Mini Cooper, the New York Times says.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/rare-nissan-for-sale-800474899.aspx Thu, 31 Mar 2011 08:48:53 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/buying-a-new-car-with-children-in-mind-800439891.aspx Parents with small children may have extra features to consider when purchasing a new vehicle that will be safe and comfortable for everyone in the family. Even before beginning the shopping process, parents should thoroughly consider their family structure and needs of the youngest members, according to American Baby.

The number of children in the family is important, whether they are still at the age that requires car seats or not, according to the source. Since children under the age of 12 are reportedly 30 percent less likely to sustain a fatal injury in an accident if seated in a rear seat, according to SafetyBeltSafe USA, the number of children in a family under that age should dictate the amount of rear passenger seat space a family looks for in their new vehicle. More than 90 percent of the 290 passenger deaths occurring from front airbag deployment between 1990 and 2008 were children, according to the National Highway Traffic Safety Administration.

Child seats for younger, smaller children should only be used in the back seat for optimal safety, and rear-facing child seats should never be placed in a front seat unless the passenger side airbags have been temporarily disabled, American Baby says. Children under one should always ride in a rear-facing seat, but those at least one year old and 20 pounds may ride facing forward either in a child seat or booster seat. Booster seats are intended to lift the child to a height that allows the seat belt to fit them appropriately, with the shoulder strap falling comfortably across the body and the lap belt snug. Though they may significantly improve child safety in the event of an accident, only 19 percent of children within the age, height and weight group for booster seats use them, according to the National Safe Kids Campaign. 

For older children who have outgrown both child and booster seats, proper seat belt fit is still essential for selecting a family vehicle. Improperly placed seat belts can sometimes cause or worsen internal injuries sustained in a crash. Most children will be unable to properly use a vehicle's safety belt system without assistance until they weigh about 80 pounds and are around 4 feet 9 inches tall, the source says.

Rear side airbags may also cause concern for some parents, as it has been reported that they may cause increased injury to children. Though this has been disproved by a field study showing no increased injury from side airbag deployment and NHTSA statistics that no children died from 1995 to 2008 from that type of airbag, those with lingering concerns can search for a vehicle without rear side airbags by asking manufacturers if their cars have the feature. 

The Lower Anchors and Tethers for Children (LATCH) system was implemented by the NHTSA to facilitate proper car seat use, since three out of four car seats are not used properly, according to the group. Most car seats and vehicles manufactured since September 2002 are equipped with the attachment sites to connect the car seat to the vehicles with tethering straps through one upper anchorage and two lower anchorages. Convertible vehicles generally do not have these attachments available.

For those concerned about whether or not their vehicle is safely setup to transport their children, the NHTSA has Child Safety Seat Inspection Stations, where certified inspectors can ensure the vehicle has the safest arrangements. These stations are located nationwide and can be found on the NHTSA's website, which also has information regarding recent car seat recalls and other pertinent information for car safety for children.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/buying-a-new-car-with-children-in-mind-800439891.aspx Wed, 02 Mar 2011 21:44:22 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/how-to-know-when-its-time-for-a-new-car-800382580.aspx Buying a new car can be an expensive venture, but is sometimes necessary for those who need a replacement vehicle. However, MSN recommends drivers on a budget perform an in-depth evaluation of their finances and whether a new car is truly a necessity before taking the plunge.

Drivers considering a new vehicle because their old one no longer fits their lifestyle should analyze how the changes that have occurred in their lives impact the vehicle they drive. If these changes are only occasional, such as family visits or long-distance road trips, they could save money by renting a car when necessary. An occasional rental is much less costly than a monthly car payment, MSN says.

Drivers with older vehicles that cost a lot to repair may also consider buying a new car, but MSN recommends they compare the cost of repairs to that of a monthly car payment. The same goes for a vehicle that incurs damages in an amount higher than its value. If buying a new car would be more expensive than the repairs that are already difficult to afford, then fixing the old vehicle is the more financially sound choice.

The article also recommends putting aside $50 a month for maintenance and repairs, if the driver's budget allows. This way if his or her car breaks down, there is a sum of money already set aside just for repairs. If the driver winds up not needing the money for damages, MSN recommends putting it toward a new vehicle.

Some drivers would like to replace their vehicle even if it is still running well, because they are afraid of a potential breakdown. Those nervous about driving an older car have the alternative of taking frequent preventative measures to ensure their car is in working shape. They should also carry a cell phone and register for emergency auto services, which would be less of a financial burden than purchasing a new car all together, according to MSN.

The article also suggests a way for drivers to test themselves to determine if they are financially prepared to make a car payment each month in addition to paying their other bills. Drivers should put aside an amount similar to the monthly payment for the vehicle they are interested in buying for 3 months. During the months drivers are saving up, they should contact their bank to find out what rates they charge on automobile loans of people with similar credit histories. They should also contact their insurance companies to determine the rates on cars they are interested in and their local Department of Motor Vehicles to determine the cost of registering and licensing the car.

After the 3 months have passed, drivers should evaluate how putting away that money impacted their budgets. If they had to cut back on other payments or wound up not putting aside as much money as they would need for a new car, MSN suggests they may not be ready to make the investment. Also, if they could not afford annual registration and licensing fees in addition to monthly payments, would rather have the cash for other expenses or would prefer to save cash towards a new car to avoid paying interest on a car loan, they should consider waiting.

If after the 3 month period, drivers are still itching for a new automobile, they are now aware of the monthly financial impact the decision will have and will be better prepared to deal with the consequences, according to MSN.   http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/how-to-know-when-its-time-for-a-new-car-800382580.aspx Wed, 02 Feb 2011 18:36:22 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/updating-beneficiaries-amongst-usa-todays-five-financial-resolutions-800355786.aspx In a recent article, USA Today ranked updating the beneficiaries on various insurance plans and accounts as number three in its recommendation of five financial resolutions for 2011.

The paper said insurance and pension payouts somewhat frequently go to ex-spouses or distant relatives, simply because the policy holders did not update their beneficiaries. This can result in tragedy for a family which loses its main source of financial stability, and then does not have the life insurance payouts to fall back on.

Some of the accounts USA Today listed as essential to update are pension plans, 401(k) plans, Individual Retirement Accounts, disability insurance policies, life insurance policies and annuities. They state updating beneficiaries is always essential, but is especially important after changes such as death, birth, divorce or marriage have occurred.
The other money saving resolutions on the list included ordering free credit reports, getting a medical exam, increasing 401k contributions and re-balancing investment portfolios  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/updating-beneficiaries-amongst-usa-todays-five-financial-resolutions-800355786.aspx Thu, 20 Jan 2011 15:26:24 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/what-newlyweds-should-know-before-combining-insurance-800350546.aspx For those who have just gotten engaged or married, The National Association of Insurance Commissioners (NAIC) has compiled a list of insurance options for newlyweds to consider. Though both parties may have been individually insured, it is important to know how becoming a couple may change home, life, and health insurance plans.

There are many considerations regarding home insurance, whether a couple is moving into a new home or staying in one of their previous residences. NAIC recommends first comparing the two premiums to see which affords the most coverage at the lowest rate. Even if the couple decides to move into a house one of them already lives in, reevaluating their insurance policies might save them money. The couple should keep in mind insurance rates will be different given the location of a property, size of the house and the amount of items that needs to be covered under the policy. They should take inventory of their newly combined belongings to determine how much coverage they will need and should also consider expanding their coverage if they plan to make any renovations to their home.
If the couple decides to cancel one of the home insurance policies, the NAIC warns against doing so before completely moving out. If the policyholders keep their insurance active, it will continue to cover any items left in the house if they are moving out in stages. If the property is a mortgaged home that is being sold, the spouse should ask his or her insurance company if he or she is required to maintain their insurance until the property is sold. If this is the case, he or she should inquire about any possible increased premiums since insurance companies may assign an increased risk to a vacant home due to the tendency of empty houses to attract criminals and vandalism.

For those with group health insurance who have recently gotten married, it is possible to add a new spouse to a health insurance policy outside of open enrollment times because of the life-changing nature of marriage. However, some providers have a window of time in which the notification must occur. Individual policyholders should contact their insurance companies to find out about additional requirements for adding a spouse to an existing plan. NAIC recommends considering both parties' current health situations, but also thinking about future possible health needs and finding a policy that caters to any foreseeable future illness. Also consumers should review the insurer's policy on pre-existing conditions.
The NAIC also provides advice for those who already have children at the time of their marriage and will be combining families. Though new dependents can also be added outside of open enrollment periods, the same considerations of current and future health needs is essential. In order to add them to the policy, policyholders will need their identification information including Social Security numbers and may need proof of relationship. How long a child can be insured under a parent varies by location and can be found out from each state's insurance department.

The NAIC also provides recommendations for discussing life insurance policies. The organization acknowledges the difficulty of discussing death during such a joyous time, but insists it is essential in providing for one's family in the event either member of the couple dies. The group recommends going online to research life insurance policies and finding the one best suited for the couple and their family structure. Those who already have a life insurance policy should update it to include their spouse as a beneficiary, so any future payouts are directed to the appropriate person. If new couples have questions about legal issues regarding their life insurance policies, the NAIC encourages them to contact their insurer or an estate attorney.   http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/what-newlyweds-should-know-before-combining-insurance-800350546.aspx Tue, 18 Jan 2011 18:23:16 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/military-families-dealing-with-debt-800335076.aspx According to a poll by the FINRA Investor Education Foundation, a large number of servicemembers have high levels of debt and other financial burdens, but many are still in better financial shape than the rest of the population.

According to the report, roughly 25 percent of respondents had more than $10,000 in credit card debt or overdrawing their accounts, a higher ratio than the rest of the population. In addition, just half of military workers said they had any kind of "rainy day" fund to handle unexpected costs

However, the research also found military families were better than civilians at checking their credit report, comparing prices and planning for retirement.

"The survey results show that, while our men and women in uniform are doing better in some areas than civilians, they are also significantly deeper in debt than the general population," said FINRA Foundation president John Gannon.

Many military families are also getting help with their home loans. Last month, mortgage giant Freddie Mac said it would delay foreclosures for military members for nine months, giving them more time to work with their lenders. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/military-families-dealing-with-debt-800335076.aspx Tue, 11 Jan 2011 09:39:42 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/wisconsin-school-district-oks-retirement-plan-800296288.aspx The cash-strapped school district of Sheboygan, Wisconsin, could save nearly $3 million by offering teachers who are approaching retirement age incentives to step down early, the local newspaper reported.

David Gallianetti told the Press the retirement plan is the best way to preserve educational quality and still save the district's budget.

"The teachers have been great about it. Both groups quickly came to the conclusion that this was a positive thing, not only for some individuals who will be retiring but for the district. And it doesn't compromise the quality of our instruction," Gallianetti said.

Older workers in most professions may not be as lucky, however. With the economic downturn, retirements have been getting pushed back, and some retirees have even been forced to rejoin the job market, experts say. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/wisconsin-school-district-oks-retirement-plan-800296288.aspx Thu, 16 Dec 2010 10:43:35 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/columnist-opt-for-government-loans-800296276.aspx College is obviously expensive and getting more so every year. At the same time, however, the financial aid options available to many prospective students have been drying up, causing some to turn to privately financed loans. They should avoid doing this as much as possible, though, writes higher education expert Heather Jarvis for U.S. News and World Report.

Quite simply, there is no reason to go with a private program when there are government loan alternatives available, Jarvis says. After exhausting all possible options - including work study and the multitude of scholarship and grant programs available - students should consider a less expensive school rather than taking out private loans, she writes.

Knowing what's out there is key, experts say. Instead of burdening themselves with hefty loan interest payments, college students should make every effort to graduate debt-free. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/columnist-opt-for-government-loans-800296276.aspx Thu, 16 Dec 2010 10:37:50 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/study-women-less-likely-to-plan-for-retirement-800296255.aspx While the baby boomer generation is likely to experience difficulties in retirement, females are particularly vulnerable to problems brought on by a lack of retirement planning, said a report from the Society of Actuaries.

The study said the average cost of long-term care is much higher for women than for men, at $82,000 and $29,000, respectively.

Report co-author Anna Rappaport said more women need to take the long view as they approach retirement age.

"Many women approaching retirement are not focused on the long-term, and the economic crisis of the past few years is only going to add further challenges in retirement security for women in the Baby Boom generation," she said.

Older workers of either gender who need more information about planning for retirement may want to contact a reputable financial advisor to get a better sense of their next steps. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/study-women-less-likely-to-plan-for-retirement-800296255.aspx Thu, 16 Dec 2010 10:35:48 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/investment-report-young-workers-on-wrong-track-for-retirement-800296229.aspx Elderly workers are often cited as being ill-prepared for retirement due to the economic downturn. However, research from human resource consulting company AON reveals it may be younger workers who are worse off.

Despite having more years left in the workforce than their older counterparts, Generation Y is posed to struggle in retirement. AON says 80 percent of those between the ages of 18 to 30 won't have enough set aside for their golden years unless they change their money handling and investment behaviors.

AON Hewitt retirement research director Pamela Hess says despite having more time on their hands, younger workers face other pitfalls not experienced by older generations.

"Younger workers will have fewer future benefits from their employers and potentially the government," says Hess. "They need to save a third more in their defined contribution plans than workers who are nearing retirement today, but there's clearly a lack of urgency to proactively save."

AON estimates Generation Y workers need to sock away 18.7 times their pay for retirement, but the current rate averages just 12.4 of times. There are a variety of factors behind this trend.

The average bachelor's degree graduate faces around $20,000 in debt. A large amount of debt coupled with poor job prospects and stagnant wages is making it more difficult for younger workers to realize the benefits of their education and plan for retirement.

Ideally, a student selects the most affordable college available and utilizes a combination of grants and scholarships to get reduced costs. Taking advantage of federal student loans over private options and working if possible to reduce costs down the road is also a wise plan.

When a recent graduate has substantial loans to repay along with rent and a low-paying job, it can be difficult to figure out what to do financially. Many experts agree that funds left over from paying for essentials should be funneled into savings and retirement accounts.

A number of employers offer a 401(k) program that allows money to be withheld from a paycheck and deposited into an account tax-free. The invested funds' growth is dependent on how well stocks perform.

Another big benefit to the account is that employers frequently match contributions up to a certain percentage, allowing investors to automatically yield a positive return. Taxes are applied to the funds upon withdrawal. It's important for investors to note penalties apply if funds are withdrawn before retirement age.

"Employers can play a critical role in helping this generation of workers by being thoughtful about offering participants the help they need to get on the right track," says Hess. "Automated tools with more robust defaults, innovative matches, investment advice and personalized messaging leveraging innovative technology are effective ways to start and keep these younger workers on the right path."

Not everyone will work for an employer that offers a 401(k) plan, but that doesn't mean investing for retirement can't be done. Another sound investment vehicle is a Roth IRA. Contributions to the account are made with taxed income. Some people prefer the accounts as investors can select which stocks and bonds their money is placed in. The maximum amount a person under 50 can invest in a Roth IRA is $5,000 annually.

Learning the ins and outs of investing can seem daunting at first, so it may be a good idea for those starting out to hit the books again and read up on the basics. Whatever the investment decision, it's important to be educated in order to avoid falling victim to a loss of funds.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/investment-report-young-workers-on-wrong-track-for-retirement-800296229.aspx Thu, 16 Dec 2010 10:31:01 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/for-profit-education-industry-preying-on-returning-vets-800296238.aspx For-profit educational institutions have used American servicemen and women returning from overseas as a way to circumvent limits on the amount of federal aid money they can receive, according to a report issued last week by Senator Tom Harkin.

Changes to the GI Bill - a law passed in the wake of the Second World War which gave millions of veterans the chance to attend college - made after 9/11 boosted the amount of money for college military personnel could receive, but more than a third of the funds paid to schools under the new program went to for-profit schools like the University of Phoenix, according to federal statistics cited in the New York Times.

The newspaper says such schools have instituted expensive marketing campaigns to lure veterans, but their high dropout rates and the difficulty faced by many students in transferring credits to other universities has caused controversy.

"For-profit schools see our active-duty military and veterans as a cash cow, an untapped profit resource," Senator Harkin told the Times. "It is both a rip off of the taxpayer and a slap in the face to the people who have risked their lives for our country," he said.

Former recruiters for some of the colleges in question agreed, according to the paper, saying they had been placed under pressure to sign up as many veterans as possible, and faced consequences if they failed to meet quotas.

The Times reports there is bipartisan agreement about the need to protect veterans from such predatory practices. Republican Congressman Walter Jones told the paper even those personnel who finished online or for-profit degrees were at a disadvantage.

"Here we are telling these young men and women they can get a higher education, and they get cheated. I think it is a sin," he said.

Senator Harkin has long been one of the for-profit educational industry's strongest critics. Another report from his office, issued at the end of September, found such institutions received disproportionate amounts of federal assistance for the number of students they enrolled and were almost entirely dependent on such government funding for survival - roughly 87 percent, for 14 large schools. That study also noted more than half of the schools investigated by the Government Accountability Office used highly unethical practices to recruit potential students.

In addition, well over half of all spending at some of the largest for-profit institutions goes toward marketing and recruitment, instead of educational costs, the report said. Fifty-seven percent of students at these schools who signed up in 2008 and 2009 incurred significant debts but did not receive a degree.

Despite the apparent lack of any significant income beyond government assistance, the schools - which were already highly profitable - saw massive increases in revenues after the new GI Bill went into effect. Harkin's latest report indicates revenue from military personnel tripled as a result.

The head of the Association of Private Sector Colleges and Universities, Harris Miller, told FOX News for-profit schools provided flexibility that traditional institutions lack.

"If these students are mature enough to make the choice to put themselves in harm's way to serve their country, they are mature enough to select the higher education alternative right for them," said Miller. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/for-profit-education-industry-preying-on-returning-vets-800296238.aspx Thu, 16 Dec 2010 10:29:22 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/college-bound-students-say-theyre-stressed-about-admissions-and-financial-aid-800296215.aspx Going to college can be a stressful and frightening time for even the most independent teen. A combination of leaving home, rigorous academics and high tuition costs can make for a trying experience.

A study conducted by Harris Interactive for American College Counseling reveals more than 75 percent of high schoolers say they are stressed about the college admissions process. Being prepared and seeking assistance may help students feel more at ease.

A school's guidance office is a good place for families to turn for help in selecting a college and learning about financial aid. In an ideal world, parents will have contributed to a 529 college savings plan or other account for several years.

There are options for those who haven't been able to set money aside for college expenses. Many students end up taking out a combination of private and federal student loans to help bridge the gap between what they can afford to pay and school fees. Experts suggest seeking out federal loans first because interest rates are lower. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/college-bound-students-say-theyre-stressed-about-admissions-and-financial-aid-800296215.aspx Thu, 16 Dec 2010 10:28:29 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/new-texas-program-provides-money-for-college-800296194.aspx Community tax centers will become the sites for a new program to provide limited matching funds to less affluent Texans looking to save money for college, wrote the Dallas Morning News.

The group behind the new initiative, Opportunity Texas, got the ball rolling by giving grant money to two smaller non-profits, the United Ways of Texas and Foundation Communities, the paper said.

The idea is to provide small amounts of money or gift cards to people who take advantage of check-off options on their taxes to buy education bonds. A researcher at one Austin think tank, the Center for Public Priorities, praised the new plan.

"It's amazing what a small incentive can actually encourage folks to do, so $10 could actually spur somebody to buy a $50 or $100 savings bond," Don Baylor told the Morning News.

Regardless of how they do it, parents should regard saving money for their children's college funds as a high priority. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/new-texas-program-provides-money-for-college-800296194.aspx Thu, 16 Dec 2010 10:24:42 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/survey-generation-y-learned-from-recession-800296192.aspx Young workers have a lot working against them financially. Generation Y has been hit hard by high unemployment rates, low starting salaries and increasing college tuition fees.

A TD Ameritrade survey, however, shows those earlier in their careers are making some smart moves with the funds they do have. Generation Y investors are just over 10 percent more likely than Generation X to monitor their stock portfolios. Additionally, Generation Y is 20 percent more likely than Generation X to add money to such funds.

TD Ameritrade managing director Nicole Sherrod says the younger generation has learned from the recession.

"Gen Y has accepted the reality of the past few years, and rather than being discouraged, they've changed their behaviors and are using what they've witnessed to their advantage," says Sherrod. "This is something that older generations could benefit from as well."

It's important for people to monitor their investments. Some stocks and similar investments have stronger performances than others. Being negligent in one's retirement plans can result in a large amount of missed income.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/survey-generation-y-learned-from-recession-800296192.aspx Thu, 16 Dec 2010 10:22:55 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/retirement-unlikely-in-many-peoples-eyes-800296182.aspx The image of extravagant vacations, lavish gifts and helping send grandchildren off to college during one's retirement years appears to be fading. Instead, more people see what was once thought of as "golden years" as a new phase in their working lives.

A survey by Wells Fargo found more than 70 percent of middle-class Americans between the ages of 25 to 69 anticipate working into retirement age.

In some cases, working until later in life isn't going to be a choice, but a necessity. Wells Fargo Institutional Retirement and Trust director Laurie Nordquist says many people don't have enough money socked away to comfortably retire.

"People are not even close to where they need to be in total savings," says Nordquist. "Barring a miracle, a winning lottery ticket or a big inheritance, they're going to be forced to dramatically cut back their lifestyles after retirement."

Many financial experts agree it's important to begin saving for retirement at an early age. Participating in an employer's 401(k) program or opening a Roth IRA are two popular investment vehicles. By investing early, funds will grow more due to compounding interest.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/retirement-unlikely-in-many-peoples-eyes-800296182.aspx Thu, 16 Dec 2010 10:21:14 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/florida-government-retirees-under-the-gun-800296179.aspx Moves to balance the state budget could mean shrinking paychecks or even pension cuts for Florida's government workers, says a recent report in the Orlando Sentinel.

The Florida retirement system's 319,000 retired members come from more than 900 different state agencies, the Sentinel reports. Despite a projected deficit this year of $15 billion, stronger-than-expected investment returns helped keep the fund above water.

However, the paper says there are more cuts pending, due in large part to Governor-elect Rick Scott's campaign pledge to cut property taxes to around $4 per $1,000 of assessed valuation. The move would take $1.4 billion out of the state's income and the Sentinel says the deficit could be made up by imposing a 5 percent paycheck contribution to the retirement fund on government workers.

The economic downturn threw a wrench into many workers' retirement plans, and conditions are still unfavorable, according to personal finance experts. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/florida-government-retirees-under-the-gun-800296179.aspx Thu, 16 Dec 2010 10:19:57 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/study-401k-contributions-rise-800296159.aspx Maybe a sign the economy is recovering or perhaps Americans have less faith Social Security will be able to provide adequate funding, but more workers are contributing to employer-sponsored retirement accounts.

According to the Principal Financial Well-Being Index, there was a 4 percent increase in eligible employee participation in 401(k) programs between 2009 and 2010. Additionally, more respondents indicated they've increased the amount they are contributing to such accounts.

Principal vice president of retirement and investor services Luke Vandermillen says many employees are taking retirement funding into their own hands.
"While the road may still be bumpy, many Americans are taking personal responsibility to improve both their short-and long-term financial well-being," says Vandermillen.

Those who work for an employer who doesn't offer a 401(k) program as a benefit should consider a Roth IRA. A nice perk to the account is that, in the event of an emergency, a person can withdraw funds without penalty. Furthermore, those who want to maximize retirement savings can contribute to both plans. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/study-401k-contributions-rise-800296159.aspx Thu, 16 Dec 2010 10:15:30 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/new-years-celebration-raises-breast-cancer-research-funding-800300263.aspx Visitors to New York City’s famous Times Square area can help the fight against breast cancer simply by swiping their MasterCard at one of 90 participating businesses until December 31 at midnight.

The credit card company announced in late November it would donate $1 per MasterCard purchase - with an upper limit of $1.5 million - to the charity Stand Up to Cancer until the New Year.

The chief marketing officer of MasterCard Worldwide, Alfredo Gangotena, praised New Yorkers and Times Square businesses for their participation.

"With the ongoing support and heartfelt generosity of New Yorkers, and those visiting New York this holiday season, we can continue to raise funds for the fight against cancer," he said in the announcement.

The statement also urged consumers to support Stand Up for Cancer in other ways, saying the disease kills 1,500 Americans each day.
  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/new-years-celebration-raises-breast-cancer-research-funding-800300263.aspx Wed, 08 Dec 2010 14:05:07 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/i-just-got-a-raise-will-my-insurance-premium-go-up-800319935.aspx Property Insurance and Income

There are a number of reasons why your home owner's insurance premium may increase, but your income is not a factor.

If a recent raise means you will make major improvements to your home, or invest in new furnishings or valuables, be sure to review and update your policy and home inventory to include any upgrades or additions.

Worried about your rate? There are a number of reasons why your home owner’ insurance premium may increase, but your income is not a factor. If a recent raise means you will make major improvements to your home, or invest in new furnishings or valuables, be sure to review and update your policy and home inventory to include any upgrades or additions. Worried about your rate? Allstate also offers Claim RateGuard® to protect you from potential premium increases if you have a claim. Talk to your agent to find out if it’s right for you. Claim RateGuard® to protect you from potential premium increases if you have a claim. Talk to your agent to find out if it's right for you.


Auto Insurance and Income

In addition, your auto insurance premiums won't increase just because you received a raise. However, your rate may change (in either direction) if you have recently:
• changed jobs
• moved
• got married
• started using your vehicle for business purposes

Life Insurance Premiums at Work

When you purchase life insurance through work, your salary (or a multiple of it) is tied to your life insurance benefit. You could see an increased amount taken out of your paycheck because, essentially, you have increased your life insurance when you received your raise.

For example, let's assume your old salary was $60,000 (and your life insurance policy at work was based on that), and you pay an extra premium to purchase coverage up to three times your salary. The amount taken out of each paycheck is usually tied to salary level. So, if your salary goes up to $70,000 and you keep the same coverage options, the amount taken out of your paycheck going forward will typically be higher because the amount of insurance is also higher. Talk to your employer about your options if you need to change your coverage.

Allstate understands that your life moves quickly and changes can happen quickly. Review your policy every year with your agent to make sure your coverage needs are met, and you are receiving all available discounts.

To find out the details of your policy, be sure to talk to your agent. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/i-just-got-a-raise-will-my-insurance-premium-go-up-800319935.aspx Tue, 22 Jun 2010 08:16:54 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/is-your-teen-really-ready-to-get-their-drivers-license-800344779.aspx Motor vehicle crashes are the number one cause of death for teens in America today. Every year, nearly 6,000 teens are killed and about 300,000 are injured in crashes.

When parents play an active role in helping their teens learn to drive and set driving guidelines, they can help reduce their teens’ chances of being involved in a crash. And, believe it or not, in a recent survey by The Allstate Foundation, teens said their parents have the strongest influence on their driving behavior. So it’s vital for parents to take the lead in this rite of passage for their teens.

Here are some important things parents should consider before their teen gets their license:

Decide if your teen is ready

Not all teens should drive solo when the law says they can. Some characteristics to look for when determining if your teen is ready for a license:
- Good judgment in general
- Ability to resist peer pressure
- Control of emotions
- Ability and willingness to follow state driving laws and your rules
- Comfort and self-assurance (not overconfidence) behind the wheel

Understand your state’s laws

Every state has Graduated Driver Licensing (GDL) laws that restrict newly-licensed teens from driving in high-risk times and situations until they gain valuable on-the-road experience. Familiarize yourself and your teen with the laws in your state.

Establish your family’s rules

As a supplement to your state’s GDL laws, complete our Interactive Parent-Teen Driving Contract that outlines your own rules about when, where, how and with whom your teen may drive — and consequences for breaking them. According to the Insurance Institute for Highway Safety, the most important rules are to restrict night driving starting at 9 or 10 p.m. and allow only one teenage passenger for the first year after your teen is licensed.

Stick together

Be sure to encourage other parents in your community to set appropriate rules for their teens so you can present a united front.

Keep talking

Continue to discuss the risks and responsibilities of driving with your teen even after he or she gets a license. Be sure to encourage your teen to speak up and discourage risky behaviors—both as a driver and a passenger.

For more information about ways to help teen drivers come home safely, visit The Allstate Foundation’s teen driving resource center, where you’ll find lots of information to download and other information to share. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/is-your-teen-really-ready-to-get-their-drivers-license-800344779.aspx Mon, 14 Jun 2010 17:33:46 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/6-good-reasons-to-work-during-retirement-800344764.aspx These days, many would-be retirees are delaying their exit from the working world, or beginning a second career. Here are just six of the many reasons why it makes sense for them—and why it could work for you, too.

 

1. You're at the height of your career.

Experience, perspective, maturity, and seniority are all on your side. Many sixty-somethings find they aren’t quite ready to give up all that they’ve achieved in the working world.

 

2. The world is your oyster.

Now’s the time to go for your dream job. You’re less likely to need the highest salary you can get, so this could be the perfect time to indulge your creative side, jump into the non-profit world, or simply trade your high-stress job for a more enjoyable one.

 

3. Even part-time work can help pay bills.

When you’re raising kids and paying a mortgage (or two), it might seem like you could never live on less than two full salaries. By the time you’re ready to retire, your expenses could be much lower. A hundred dollars might look very different to you then than it does now.

 

4. You could get more Social Security benefits.

If you can avoid collecting Social Security payments until you hit “full retirement age,” you could collect more over the long run.

 

5. Your transition into retirement will be smoother.

Retirement sounds like a wonderland of free time, quiet, and all-around freedom. And for most retirees it is—at first. After the first year or two, though, some people find themselves feeling a bit bored or lost.

Moving from your full-time career to part-time work gives you the chance to indulge your hobbies, while still living a structured life. By the time you’re ready to stop work completely, you’ll have a better idea of what to do with your time and energy.


6. It could help keep you healthy.

Keeping your mind and body active are essential to your health and wellness. As long as your job isn’t too stressful, it could actually help keep you going strong. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/6-good-reasons-to-work-during-retirement-800344764.aspx Mon, 14 Jun 2010 17:28:56 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/what-if-im-buying-insurance-for-a-new-car-and-what-if-its-my-first-car-800344749.aspx When buying - and insuring - a new car, a little research can go a long way toward keeping you safe, and saving you money.

If you’re getting ready to purchase your very first car, there’s a lot to consider: new or used, leased or owned, price range, financing, safety ratings. It can easily feel overwhelming—especially when you consider that all of these factors can affect your auto insurance costs.

But with a little research, and a realistic sense of your needs and budget, you’ll be able to make the best decision possible—and probably save some money in the process.

Stay Grounded with the Facts

It’s always fun to dream big, but figuring out which car is right for you, your life—and your budget—means you need to be practical, too.

Start by answering some simple questions:
How will you be using your new car? (As a commute car, a family car, etc.)

Will you be driving passengers? (And if so, how much space will you need?)

How many miles will you be averaging per week?

Where will you be driving, and parking? (Highway, city, etc.)

Do you need safety, comfort, economy, or all three?

It’s also smart to consider the kind of features that will be most important to you—things such as fuel efficiency, cargo capacity, leg room, two-or four-wheel drive, transmission type (automatic or stick), safety and braking systems. Once you have a sense of the facts, you’ll have a clearer sense of the size and type of car that’s right for you.

Know Your True Costs

The true costs of car ownership go far beyond the sticker price. So take a realistic look at your budget, and remember to factor in:

Monthly financing and interest fees

Taxes

Maintenance

Monthly fuel costs

Auto insurance

Be clear and realistic about any “extras” you might be considering: certain features (even those that might seem standard) can add up quickly, sometimes increasing your purchase price by 10% or more.

To better guard against “price-creep,” try shopping online. Many auto manufacturer websites let you customize your car, feature by feature. This can help reveal hidden feature-costs and potentially unnecessary expenses.

Insuring Your Big Purchase

Above all, keep in mind that auto insurance is one of the most important costs attached to your new car.

Additionally, the choices you make, and the kind of car you buy will have a direct impact on your insurance premiums. Your car’s sticker-price, overall safety rating, and theft risk can all play a part in determining your insurance rates.

Not all Cars are Created Equal

For instance, an expensive car or luxury vehicle will most likely cost more to insure than an economy car. This is because an expensive car usually costs more to maintain (parts and labor are pricier), and it will usually hold a higher reimbursement value if deemed a total loss.

However, not all comparisons are this cut-and-dried. Certain economy cars might cost almost as much to insure as a high-end vehicle if:

They incur a great deal of damage in an accident (and thereby cost more to fix, or are more likely to be deemed a total loss)

They inflict more damage to other cars (or passengers) in an accident

Also, certain economy cars may not qualify for the kinds of discounts a mid- or high-priced vehicle will. This, too, can keep insurance premiums higher than they otherwise could be.

Remember Your Discounts

That brand new car may also have factory-standard features that might save you money. At Allstate, we offer a wide variety of discounts, particularly for cars that may include:

Passive restraint systems

Anti-lock brakes

Front- and side-impact airbags

Daytime running lights

And, in some states, anti-theft devices

You might also be interested in our unique New Car Replacement option. With this coverage, if your new car gets totaled within the first 3 model years, you can get a new car—not just the depreciated value.

A Little Research Goes a Long Way

Once you have an idea of the kind of car you’ll be insuring, you can get a personalized auto quote in minutes. Or, get a Ballpark Estimate without even giving your name or other personal information. Either way, you’ll find out how affordable great Allstate coverage can be. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/what-if-im-buying-insurance-for-a-new-car-and-what-if-its-my-first-car-800344749.aspx Mon, 14 Jun 2010 17:26:38 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/i-lost-my-job-does-my-insurance-need-to-change-800325671.aspx Getting laid off not only means your stress level gets kicked up a notch while you try to figure out how to replace the valuable income you lost, but it also means that you need to reassess your insurance. Where does your health insurance come from? Do you still need the same level of auto insurance if you're not using your car to go to work? Should you get less coverage to save money?

Health Insurance

If you're like most American workers, you get your health coverage through your employer. When you and your employer part ways, that doesn't necessarily mean your health coverage is terminated too. If you get a severance package, continued benefits as well as continued salary could be part of the picture.

But if you are still unemployed at the end of your severance package, you might want to look into COBRA. It's a program that helps workers bridge the health insurance gap between jobs. It typically helps provide you with temporary health insurance at the same rate your employer would have paid. Which means you're probably getting a discounted group rate, but it still will likely be higher than what you had paid as an employee.

Auto Insurance

Even if you're not driving your car to work anymore, you still need to have auto insurance according to most state laws. However, you can consider tweaking your coverage limits to reflect your new driving situation.

For instance, if your car is just sitting in the driveway, you might consider raising your Collision or Comprehensive deductibles or changing that coverage. But, if you do start driving again, remember to consider changing your deductibles back. And the additional bells and whistles like towing and labor, rental reimbursement or sound system coverage might be something to think about as well.

Home Insurance

If you lose your job, chances are - you'll want to have the same coverage as you did when you had your job. After all, you've still got the same assets and family members to protect. Without a steady income, you'll probably need this kind of coverage now more than ever in case something did happen.

What you can do to cut insurance costs is look at moving all your insurance policies to one company. You'll get the benefit of big multi-policy discounts — sometimes up to 20%. In fact, people who switched to Allstate found themselves saving hundreds on auto and home insurance — you can find out how much you could save by starting a quote.

Source: http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/i-lost-my-job-does-my-insurance-need-to-change-800325671.aspx Sat, 05 Jun 2010 17:16:25 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/your-first-car-means-your-first-auto-insurance-policy-800344786.aspx Congratulations on buying your first car! Whether you've just started driving or are finally striking out on your own, being responsible for your own ride brings a lot of independence along with an all important "to-do": Getting your own auto insurance.


Get Covered and Save Money

Just because you're a first time car owner doesn't mean you can't save money too. Allstate has a variety discounts based on your driving record or vehicle ownership experience is. Here are just a few you could qualify for:
New Car Discount
Safety Feature Discount
Anti-Theft Device Discount
Good and Resident Student Discount

Get Protected with the Right Coverage

Probably the most important decision you'll need to make when it comes to your auto insurance is how much coverage to have. You might be tempted to go as low as you can, but remember to think about how much it would cost if your new car got totaled, or if you hurt someone and were responsible for their medical bills.

Paying a few extra bucks a month could be worth it in the long run. Here are some of the typical coverages you'll find on your policy.
Coverage That Protects You if You're at Fault
Bodily Injury Liability
Property Damage

Coverage That Protects You From Uninsured Drivers
Uninsured and Underinsured Motorists

Coverage That Protects You if You Get Hurt
Medical Payments
Personal Injury Protection

Coverage That Protects Your Car
Collision
Comprehensive


Go to the Next Level with New Car Replacement

At Allstate, we offer a discount for new cars. And check out our New Car Replacement feature available with Your Choice Auto®. If your new car gets totaled within the first 3 model years, you can get a new car not just the depreciated value.


Get a Quote and Get Started

Allstate's quote tool is quick and easy, can tell you how many discounts you qualify for, help you understand your coverage options and even lets you purchase online. Get an auto insurance quote. You can also talk to an Allstate agent or call 1-866-621-6900 to talk to a licensed insurance professional. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/your-first-car-means-your-first-auto-insurance-policy-800344786.aspx Fri, 14 May 2010 17:36:09 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/first-time-auto-insurance-buyers-guide-800336287.aspx If you've never had an auto insurance policy before—don't worry. It isn't as complicated as it seems. Understanding what you're buying is important. But with a little research, Allstate's online tools and your local agent, it can be easy.

Where Do You Start?

Before you start comparing auto insurance quotes and companies, take a little time to figure out what you need. The Bumper-to-Bumper BasicsSM tool helps you do exactly that. It only takes a couple minutes and any one of our virtual guides can explain auto insurance so it's easy to understand.

After that, you're ready to start a Ballpark estimate. It's quick and you won't even have to give your name. It'll also help you quickly understand what rates you can expect to pay, along with what features and coverages are available.

What Coverages Should You Consider? 

Every auto insurance policy has several different coverages that protect you, your passengers, other drivers and your vehicle. Some coverages are required by the state you live in, and some are optional. Here's a short list of common auto insurance coverages, along with what they typically cover:

• Bodily Injury Liability — Costs that you're legally responsible for, resulting from bodily injury or death to another person.

• Property Damage Liability Coverage — Damage to another person's vehicle or property that you're legally responsible to pay for.

• Medical Payments Coverage & Personal Injury Protection Coverage — All reasonable medical expenses resulting from a bodily injury, sickness, disease or death of your passengers or a driver on your policy, as the result of an accident.

• Underinsured / Uninsured Motorist Coverage — Costs resulting from bodily injury caused by another driver who doesn't have enough insurance (or any at all).

• Collision Coverage — Damage to your vehicle caused by a collision with another object or from the vehicle rolling over.

• Comprehensive Coverage — Damage to your vehicle from anything other than a collision. Things like a windstorm, fire, theft, hail, flood or vandalism.

The insurance coverage you choose depends on your situation. Even though you're just starting out, getting the bare minimum might not be right for you. Take a look at what each one covers, and decide whether or not that protection is something you need. Sometimes, adding an optional coverage only amounts to a few extra dollars a month.

How Much Auto Insurance Coverage Should You Consider?

Once you know what you're interested in, the next step is to choose how much insurance protection you want. Typically, you'll be choosing a limit or a deductible.

A limit is the maximum amount an insurance company will pay out for a particular coverage. A higher limit means you're better protected from high costs, and that protection will cost you more money.

A deductible is the amount you've agreed to pay out of your pocket before the insurance company pays for any other covered losses. You usually have to choose one when you get Collision or Comprehensive coverage. After you pay a deductible, the insurance company typically pays the rest, up to the actual cash value of your car. Choosing a higher deductible typically means your premium will be lower.

How Do You Know If You're Paying Too Much?

Make sure you're comparing "apples to apples" when you're looking at rates from different auto insurance companies. In other words, when you get quotes to compare, make sure they include the same coverage, limits and deductibles. Even though a quote might look lower, it might not offer you the same protection as a more expensive one.

Most auto insurance companies, including Allstate, will offer a variety of discounts. Try using the Personal Quote tool to find out all the discounts you qualify for, or talk to your local agent.

Rethinking Your Auto Insurance Coverage

Most insurance policies are renewed every six months, and some people go back over their policy then to make sure their needs are still being met. Others check it less often—when they have a major life change. Like getting married, having a baby, buying or selling a car, buying or selling a home—anything that affects their assets.

What If You Need to Make a Claim?

Making a claim is the exact reason you carry auto insurance—it's what you do when you have a loss that's covered by your policy. You might not be thinking about it now, but after an accident, having an experienced company with a smooth claims process can help get things back to normal much easier.

Allstate has a 24/7 Customer Information Center that is always available to help you with your claim, and your local agent is there for you too. If you sign up for Allstate's free Customer Care website, you can even make and track your claim online anytime, anywhere.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/first-time-auto-insurance-buyers-guide-800336287.aspx Thu, 13 May 2010 15:08:02 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/first-time-home-insurance-buyers-guide-800336275.aspx With median home prices hovering above $200,000 in the U.S., your home is probably the biggest single purchase of your life. Protecting that home is just as important as the number of bedrooms or the type of mortgage you get.

Where Do You Start?

As a first-time home buyer, you've got a lot of decisions to make. Making sure that you've got enough protection for your home won't just help you sleep easier at night—a lot of mortgage lenders require it.
A good place to start is Allstate's Quick Homeowner's Quote. Besides seeing what coverage you can get on your policy, it'll also give you a general idea of what you can expect to pay for your protection.

What Homeowners Insurance Coverage Should You Consider?

Every homeowners insurance policy has several different coverages that protect the people living in and visiting your home, and of course, the home itself. Here's a short list of common coverages you might see, along with what they typically cover:

• Personal Property—Your personal possessions

• Family Liability Protection—Costs resulting from bodily injury or property damage that you're legally responsible to pay for.

• Guest Medical Protection—Medical expenses for your guests who are accidentally injured on your property

• Additional Living Expenses—Reasonable increase in living expenses if your home becomes uninhabitable because of a loss that's covered by your policy.

One important thing to remember is that the standard coverage might not always be your best option. For example, if building materials cost more in your area of the country, or if you own a lot of expensive things, you might want additional coverage.

How Much Homeowners Insurance Coverage Should You Consider?

Once you know what you're interested in, the next step is to choose how much protection you want.

Think about how much it would cost to replace your home and your possessions. You also might want to think about what would happen if someone had an accident and got hurt. Medical expenses might not be too bad, or they could be pretty significant. Keep in mind that if you don't have enough insurance coverage, you could be responsible for paying those expenses with your own salary or your assets.

Typically, you'll be choosing a limit or a deductible.

A limit is the maximum amount an insurance company will pay out for a particular coverage. A higher limit means more protection, and that protection will cost more money.

A deductible is the amount you've agreed to pay out of your pocket before the insurance company pays for any other covered losses.

How Do You Know If You're Paying Too Much?

The best way to make sure you're paying a fair price is to compare quotes between home insurance companies. One of the most important things to consider is to make sure you're comparing "apples to apples." In other words, when you get quotes to compare, make sure they include the same insurance coverages, limits and deductibles. Even though a quote might look lower, it might not offer you the same protection as a more expensive one.

Most home insurance companies, including Allstate, will offer a variety of discounts based on who you are and what features your home has. Try using the Full Homeowner's Quote tool to find out all the discounts you qualify for, or talk to your local agent. They'll be able to help you find all the discounts you qualify for.

How Often Should You Revisit Your Homeowners Insurance Policy

Most insurance policies are renewed every year, and some people check things over to make sure they're still well-protected. Other people check it when they have a major life change. Like getting married, having a baby, making major purchases or renovations—anything that affects their assets.

What If You Need to Make a Claim?

Making a claim is the exact reason you carry home insurance—it's what you do when you have a loss that's covered by your policy. You might not be thinking about it now, but if something happens in your home, having an experienced company with a smooth claims process can make your life a lot easier.

Allstate has a 24/7 Customer Information Center that is always available to help you with your claim, and your local agent is there for you too. If you sign up for Allstate's free Customer Care website, you can even make and track your claim online anytime, anywhere.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/first-time-home-insurance-buyers-guide-800336275.aspx Wed, 12 May 2010 14:51:18 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/driving-while-pregnant-800332957.aspx When you're carrying such precious cargo, you'll do whatever you can to protect it. For many women, that includes special driving habits while you're pregnant.

While some folks feel that seatbelts and airbags are dangerous for unborn children, research shows that those risks often occur because the seatbelt was worn incorrectly (or wasn't worn at all), or because the mother was sitting very close to the airbag.

To keep yourself and your baby as safe as possible while driving, follow these guidelines:

Put the lap belt under your belly, not across or on top of it.

Make sure the shoulder belt goes across the center of your chest (not under your arm).

As your pregnancy progresses, move the seat back to keep some space between your belly and the steering wheel.

Sit as far as you can from the air bag.

Tilt the steering wheel up, if you can.

Ride as a passenger when you can, to avoid the steering wheel altogether.

For long road trips, stop at least every 90 minutes to stretch your legs and walk around.

Avoid long trips after 30 weeks.

When it comes down to it, the best way to protect your baby when driving is to protect yourself. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/driving-while-pregnant-800332957.aspx Wed, 12 May 2010 11:40:27 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/im-moving-to-a-new-location-will-that-affect-my-auto-insurance-800333799.aspx In most cases, a change in location will mean a change in your auto insurance premium. It's one of the most significant factors that determine the rate you pay.

After a move, many other different factors come into play when recalculating your rates — things like changes in assets (such as a new house or an additional vehicle), changes in area crime-rate statistics, as well as changes in your annual mileage.

If your move is bringing you from a small town into a city, you may be exposed to higher risks due to more drivers and a greater number of challenges on the road. You might also be exposed to higher crime-rates depending on your new Zip Code. These are all things that may cause your premiums to go up.

That said, your move might also bring you closer to work, which might mean less time spent commuting in the car. (You may also be closer to carpooling, public transportation, bicycling, or van pooling alternatives.) A move to the country might bring you to a safer Zip Code and less risks on the road. These are things that may bring your car insurance premiums down.

Regardless, you'll need to tell your Allstate Agent about your move as soon as possible. Have your new Zip Code and other details handy. Your agent can update your insurance policy, and alert you to any discounts or other measures you can take to manage your costs. If you'd rather do some research on your own, our personalized quote tool might do the trick. Or get a Ballpark Estimate without even giving your name or Social Security number.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/im-moving-to-a-new-location-will-that-affect-my-auto-insurance-800333799.aspx Tue, 11 May 2010 17:13:53 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/i-just-bought-a-condo-why-do-i-need-condominium-insurance-not-homeowners-800332882.aspx As a condo owner, you're part of a closely tied group: your condo association. While the interior of your condo is all yours, the building structure and exterior are a shared responsibility.

Condo insurance gives you all the protection of homeowners insurance without saddling you with unneeded coverage. For example, Allstate condominium insurance offers coverage for Personal Property, Family Liability, Guest Medical Protection, and Additional Living Expenses—just like with Allstate home insurance. It gives you the chance to personalize your coverage, just like with Allstate home insurance.

Our condo insurance also has options that are unique to condos, like Building Property Protection and flood insurance. Loss Assessment Coverage is another option. It could help pay for your share of certain kinds of assessments (when your association requires an assessment on all unit owners for certain covered losses).

From every angle, condo insurance was designed to fit a condo owner's needs just right.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/i-just-bought-a-condo-why-do-i-need-condominium-insurance-not-homeowners-800332882.aspx Tue, 11 May 2010 11:27:29 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/the-home-buying-process-from-browsing-to-closing-800333777.aspx Looking for a home is exciting! But it can also be stressful, especially if your search lasts several months. Get familiar with the entire process and you'll feel more at ease at each step of the way. There are eight steps to buying a home:

1. Figure out how much you can afford.

As you've probably figured out, this is crucial. No matter how much money you've got, there will always be a house out there that's out of your price range. And there's no point in falling in love with a property that you can't afford.

Take the Next Step

Look at your expenses for the past several months to find out how much money is realistically available for housing.

Use a mortgage calculator to find out how much your monthly mortgage payment would be for a house. (Play around with various amounts until you discover what purchase price

Set up automatic transfers to your savings account to save for your down payment and emergency fund.

2. Shop for a loan.

It's possible to start house-hunting before you talk to a lender. But if you decide to make an offer on a house, the seller will want assurance that you can afford it. You could lose the house to another buyer if you wait until then to get approved for a mortgage.

Instead, consider getting preapproved for your mortgage. Talk to several lenders to find out what interest rate and terms they can offer you. Think about whether you'll want a mortgage with a fixed rate or an adjustable rate.

Once a lender pre-approves, you'll get a letter that says how much you can borrow. Take this with you when you go to look at houses, so you'll have instant verification when you're ready to make an offer. (And remember—you don't have to use the full amount stated in the preapproval letter.)

Take the Next Step

• Look up current mortgage rates for your area.

• Make appointments with two or three lenders.

• Learn more about mortgage options.

3. Learn about home buying programs.

The U.S. Department of Housing & Urban Development offers several programs that could help you out:

• FHA Loans

• Good Neighbor Next Door (formerly known as Teacher/Officer/Firefighter Next Door)

• Hurricane Evacuees discounted sales

• Homeownership for public housing residents

• Indian Home Loan Guarantee Program

Take the Next Step

• See which of the programs above you might be eligible for.

• Look for other home buying programs in your area.

4. Shop for a home.

This is the fun part! If you're planning to work through a realtor, now is the time to find one. (His or her commission will be paid by the seller. That commission is usually a percentage of the price of the house.)

Did you know you can also look at house listings online? When a home is put up for sale through a realty office, it's added to the MLS registry. Many websites will let you search the MLS listings for free. You can even do advanced searches for size, price, number of bedrooms, and lots of other characteristics. Even if you're working with a realtor, it might pay off to do some searches on your own.

Take the Next Step

• Work on your wish list for your new home.

• Download HUD's house-hunting checklist, and take it with you when you look at a house.

• Visit the MLS website to browse homes for sale in your area.

5. Make an offer.

When you find a home that you think might be The One, your realtor will compare its price with a few similar homes in the neighborhood that recently sold. This will help you decide how much to offer for the house. Your offer will probably be a form that you fill out with your realtor. That form goes to the seller's realtor, and then to the seller. Your realtor can tell you more about this part of the process. Be sure to ask about whatever isn't perfectly clear to you.

Take the Next Step

• Talk to your realtor to make sure you understand the offer process.

6. Get a home inspection.

It's safest to make your offer contingent on a home inspection. This means that if the inspection finds something wrong with the house, you reserve the right to change your offer or withdraw it altogether.

A professional home inspector will walk through the house examining the physical condition of the building, its plumbing and electrical wiring, the appliances that will come with the home, and the surrounding property. He or she will estimate how soon things should be repaired or replaced, like the water heater and air conditioner.

If the home inspector uncovers problems, you'll need to decide what to request of the seller. Your realtor should guide you through this. Typically, the seller will either have the problem fixed or lower the price of the house to cover the repairs.

Chances are your realtor will recommend a home inspection company that he or she has worked with in the past, but you should feel free to use whichever company you feel most comfortable with.

Take the Next Step

• Look for online reviews of local home inspection companies to get familiar with their work.

• Check out HUD's 10 Questions to Ask a Home Inspector

7. Shop for homeowners insurance.

As long as you have a mortgage, you'll be required to have homeowners insurance. Many lenders offer a discount if you have more than one type of insurance with them (for example, home and auto). So your first choice should be the company that insures your cars or other property.

Take the Next Step

• Call your insurance agent to request a quote for homeowners insurance.

• Learn more about what homeowners insurance usually covers

• Think about whether you might need additional coverage for jewelry, electronics, flooding, or other circumstances.

• Read HUD's 12 Ways to Lower Your Homeowners Insurance Costs

8. Sign the papers.

Once you're ready to close, your realtor (and real estate attorney, if you have one) will guide you through, step by step.

At the closing (sometimes called the settlement), the rest of the down payment will be due if it hasn't already been paid. Closing costs will also be due. You'll sign a number of documents including the mortgage, loan application, prepayment letter, disclosures, and other affidavits.

If you don't understand something, just ask to have it explained. Your realtor and attorney should be willing to make sure you know exactly what you're signing.

After that, the house is your http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/the-home-buying-process-from-browsing-to-closing-800333777.aspx Mon, 10 May 2010 16:40:16 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/my-teenager-just-started-driving-should-i-add-him-to-my-car-insurance-policy-800332712.aspx You've probably heard that "car insurance follows the car, not the driver." This usually means that if you let someone drive your insured car, they'll be covered automatically. The thing is, your auto insurance policy only includes regular drivers. If you know your teen will be driving your car on a regular basis (even if it isn't every day), you need to put him or her on your policy.

Keep in mind that teen drivers have more accidents than drivers of any other age group. So while adding your teen to your auto insurance policy will probably make your premiums go up, it's best to make sure he or she is covered. (And if you're divorced, and your child will be driving both your car and your ex's, it's best to add him or her to both insurance policies.)

When adding a teen driver to your policy, be sure to look for additional features that could protect your current level of insurance premiums. For example, Allstate offers teen- and family-friendly programs like Accident Forgiveness, New Car Replacement, the Safe Driving Bonus and a Good Student Discount. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/my-teenager-just-started-driving-should-i-add-him-to-my-car-insurance-policy-800332712.aspx Mon, 10 May 2010 11:08:10 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/im-moving-out-of-my-parents-house-what-do-i-need-to-know-about-car-insurance-800336423.aspx Auto insurance is as necessary as the gas in your tank. And armed with the right information, you can stay within the law, while also staying within your budget.

The freedom of your own place, your own rules, your own schedule - it’s about as exciting as it gets. But, of course, with freedom comes responsibility. And auto insurance is an area where you definitely want to be responsible.

Fueling Your Protection

Auto insurance isn’t an “extra.” In fact, it’s as important as the gas in your tank. Auto insurance helps protect you (from injury and unexpected out-of-pocket expenses), and your assets (in this case, that new or used car you’re driving, your wages and earnings, things like that). Plus, in most states, it’s illegal to drive without it.

Auto insurance is a powerful tool that can help:

Pay for accident-related medical care for you, or others you've injured

Pay for accident-related repairs to your car

Protect you from uninsured or underinsured drivers

Provide security and planning for the unexpected, and

It can even help protect you from damage repairs due to theft, vandalism, or natural disasters.

Hitting the Road with a Borrowed or “Gifted” Car

If you’re moving out of your parents’ house, but you’ll be taking one of their cars with you (a car that’s currently covered on your parents’ policy), then you need to make sure you’re listed on their policy as the “principal operator” (or the main driver) of the vehicle you drive. Most insurance companies (Allstate included) will consider someone a principal operator if:

The operator (driver) is the registered owner of the car,

The operator drives the vehicle to work or school, or

The operator drives the vehicle more than anyone else in the household.

Have your parents check with their insurance company to see if you should indeed be listed as the principal driver. This may affect your parents’ premiums, so it’s a choice that requires some research and decision-making.

The True Cost of a Car

If you’re moving out and you’re about to purchase or lease a car (new or used), most insurance companies and lease lenders will require that you buy a personal auto insurance policy.

But remember, the true cost of a car is a lot more than just the sticker or purchase price. So you’ll need to crunch the numbers on various car-related expenses to guard against surprises and otherwise make sure that you can afford your new (or new-to-you) purchase.

For instance, car-ownership costs can include:

Monthly loan or financing payments, and interest fees

Taxes

Maintenance (both scheduled tune-ups, and unexpected fixes)

Monthly fuel costs

After-market “extras” (a sound system, satellite radio, rims, tires, etc.)

Replacement of stolen items

Auto insurance

Managing (and Adjusting) Your Premium

If you're between the ages of 16 and 25, chances are you're going to have a higher insurance premium than other, older adults. This is because, statistically, young drivers are involved in more at-fault accidents than any other age-group on the road. But there are things you can do to keep your rates down.

If you're insured with Allstate, check out Allstate's many discounts: even though you're a young driver, you may qualify for one or more. Purchasing a car that comes with factory-installed automatic seatbelts, anti-lock brakes, and/or front and side airbags might open you up to insurance savings. Also, take a close look at how adjusting your deductible amounts, can affect your bill. (For example, raising your deductible can often bring your premiums down.)

Keep in mind that if you raise your deductibles, it might mean you have higher out-of-pocket costs if you do have an accident. A lower monthly bill might not make sense if you can't afford the higher out of pocket cost if you do have an accident. Your Allstate agent can help you decide what's best for your unique situation.

With that caveat in mind, if you own (or are going to purchase) a used car, take a careful look at your Comprehensive Coverage options. This type of coverage may be unnecessary, as sometimes your deductible may be more than your used car is worth. (Meaning it may be smarter to simply pay for Comprehensive Coverage related events out-of-pocket, when or if they happen, without the help of an insurance policy.) Again, talk to your agent before you make any changes to your car insurance policy.

Other cost-saving decisions may include declining to purchase Personal Injury Protection Coverage (or PIP). If you have health insurance through work, and it will pay for your medical expenses after an accident, then PIP might be a redundant expense. (Alternately, look into adjusting your coverage limits within your Uninsured / Underinsured Motorist Coverage. Sometimes an adjustment here can lower your bill.)

Our Bumper-to-Bumper BasicsSM virtual guides can help clear any confusion you might have about these various coverage options, and help you decide on an auto insurance policy that makes sense for you.

Shopping is Easy

Above all, shop around and do your research. Allstate lets you get a personalized quote in minutes, or get a Ballpark Estimate without even giving your name or other personal information. Allstate’s Your Choice Auto® packages can also demonstrate the powerful protection Allstate offers.

For even more personalized service, you can also talk to an Allstate agent, or call 1-800-Allstate® and talk to a licensed representative 24 / 7, 365. They’ll be glad to help you figure out how to save money without sacrificing protection. It’s just another reason why, at Allstate, you’re in Good Hands®.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/im-moving-out-of-my-parents-house-what-do-i-need-to-know-about-car-insurance-800336423.aspx Wed, 05 May 2010 16:18:30 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/will-my-car-insurance-rates-go-up-when-i-have-a-baby-800336408.aspx New parents realize pretty fast exactly how expensive parenthood can be. The good news is, car insurance won't put the squeeze on your family's budget.

Having a baby won't change your car insurance premiums - until that baby gets her driver's license and you add her to your policy. But that's a long way off.

In the meantime, you could actually lower your premiums by making sure you qualify for as many discounts as possible. For example, Allstate gives a discount for safe driving - something you'll be doing anyway with your little one on board. http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/will-my-car-insurance-rates-go-up-when-i-have-a-baby-800336408.aspx Wed, 05 May 2010 16:15:12 http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/im-moving-to-a-big-city-should-i-get-rid-of-my-car-800336396.aspx Going "car-less" in a big city is something many people do. Is it the right choice for you? Before you get rid of your wheels, make sure you keep in mind that your insurance history plays a big part in the rate you pay. Having an interruption in your coverage could increase the premium if you do need to buy a car again.

But, if you're planning on staying in the city for a long time, the savings on car payments, insurance, gas, parking, etc., might end up offsetting that percentage. Here are some things to keep in mind when you decide whether or not you need a car.

Driving Habits - Do you need your car for a commute? Do you make a lot of weekend trips outside the city? Even if you need a car to go out of town, renting a car infrequently might make sense.

Mass Transit - Can you take the bus or a train? Even if the city's system is good, make sure it's not inconvenient to get to and from your closest station

Parking - If you did have a car, where would you park? Some neighborhoods charge a monthly fee to park on the street or in a parking garage, and finding a spot close to your home or work could be a hassle.

Life Changes - Are you planning on switching jobs soon or starting a family? Be sure to think few years in the future - if you need to travel for work or need a car to carry a new baby and all the gear that comes with that, keeping your car until then might make sense too.  http://www.allstate.com/insurance-industry-news/life-changes-and-retirement-news/im-moving-to-a-big-city-should-i-get-rid-of-my-car-800336396.aspx Wed, 05 May 2010 16:10:22