Obama and the Democratic-controlled congress have good intentions, but it seems that this administration is no different from the past administration. In the worst economic crisis in decades, the people in charge of running our country are penny-wise and dollar-dumb. Despite all the current changes to medicare and the ongoing debate over more cuts to medicare in the proposed health care issue, they are overlooking one critical fact: $30 billion dollars or more of medicare money is lost each year to fraud. I don’t understand why they are not addressing this issue. Have we elected leaders that have no concept of the value of our money? Congress has managed to address all sorts of issues in the 1,000+ pages of the health reform bill; why have they not addressed the issue of fraud to the system?
We know the excuses: There’s the time constraint and the lack of people available to trace the fraud. In fact, past-President Clinton recognized the impact fraud had on our national budget and tried to get the then Republican-controlled congress to address this issue. And yet, over a decade later, nothing has been done. It insults my American blood to know that con-men are probably laughing at the ignorace of my country all the way to the bank. Not only does this show the world that our government is wasteful and financially uncaring, but I wonder just how much of this fraudulent money is used to help fund terrorism around the world.
We need to stop this fiscal leaking before we address spending more money. Can’t someone come up with a solution? Wait a minute, I have a solution! The National unemployment rate is over 10% and the the President recently held a summit on creating jobs in America with the focus on not spending more taxpayer money to do it. Why not hire some of those unemployed people to investigate the medicare fraud. One very simple solution would be to set up call centers where newly-hired medicare employees could call and verify that medicare recipients actually received the services that were billed to them. If the service was valid, those bills would be paid. If the services were not valid, then they would not get paid. This would be a self-funded program; money saved would cover the cost of the centers and the hiring of new workers. Wahla! no new expense to taxpayers and the respect of this administration and congress would increase a notch or two. In fact, maybe we should look at other areas where there is a huge waste of taxpayer’s money and see how we can put people back to work by recovering these funds.
I am not opposed to paying more taxes if that is what is needed to make this country healthy, but I am opposed to sitting back and watching my tax dollars be stolen. Our administration needs to lead by example and show us the meaning of fiscal responsibility.
Over the past year, I have watched my investments plummet then make a feeble attempt at recovery, only to nosedive again this past week. The economic news mirrors my concern. We might be in an economic bubble or we might be on the road to recovery. Who knows? Apparently no one can say for sure, despite their educational background or their position of power. I question whether my IRA will ever be healthy enough for me to retire on. Then, I tell myself not to worry, retirement is highly over-rated and what would I do with all that time on my hands anyway, especially if I can’t afford the lifestyle I want to become accustomed to. See? Even my sense of humor is suffering from this financial burden.
I am not sure who is to be trusted anymore. I was struck dumb, when I heard that the bank executives who put us in this economic tsunami must be given their million-dollar bonuses or they will go some place else to work. I say, “Let them go!” These people have proven to the world that they are the epitome of incompetency. I don’t understand why they kept their jobs in the first place, and I really don’t understand, knowing their history, who would hire them now. We have finally reached that point where the world has turned upside down, common sense has been abandoned and logic is non-existent. Hey folks, Nero is back, and Rome is burning.
I’m not one for idly standing by and yet, where my finaces are concerned, I must confess, I have taken the passive road. I have trusted strangers to turn my hard earned money into a comfortable nest egg. I hypnotized myself into believing that since the investmenet firm had an old, established name, it was a safe place to invest. Silly me. Over the years I have learned that the only one who can take care of me the way I want to be taken care of, is me. And if I want to see a safe, secure financial future, than it is up to me to take the necessary action to make it happen. I have made a commitment to handle my own financial future. I have enrolled in investment classes and when I am done, I will have the knowledge I need to chart my own path.
Wish me luck and follow my progress here.
The nightly news is a constant reminder that record numbers of homeowners are falling behind on mortgage payments and the U.S. economy is losing jobs at an alarming rate with companies big and small slashing their work force. A half-million American jobs disappeared last month, the worst mass layoffs in more than three decades, as the nation spiraled downward in what could be the hardest hit times since the Great Depression. Compound this with the fact that more than 3 million manufacturing jobs have disappeared since 1998, and the Economic Policy Institute estimates 59 percent-or 1.78 million-of these jobs have been lost due to the explosion in the U.S. manufacturing trade deficit over this same period and it is understandable that you and I don’t believe that little things we do can make much of a difference in this financial crisis. But on my weekly trip to the store, I had an epiphany and began to think differently. Read more »
We have accepted the fact that in lieu of a stimulus check in the mail, we should be seeing more money in our paychecks. And that is fine and good. In fact, rumors abound throughout this country that Obama will seek major tax cuts in his stimulus plan, and there are several tax breaks under consideration right now. All this talk makes taxpayers feel like relief is finally on the way. But what can we really expect? One plan is to provide a tax credit that would allow companies to reduce the tax they withhold. However, if that is only $500 for individuals and $1000 for a couple, as proposed on CNN.Money, I don’t see how that is going to impact the way I spend my money. If I break $500 down by 26 paychecks a year, I will only see an increase of about $19 per payday. I do understand the economics behind this but it doesn’t make me feel any better. A mere $19 is not really enough money to increase a credit card payment and it’s not enough money to stash away in a savings account so I probably will spend it without thinking, which is exactly the intention of this tax cut. The problem is, $19 every other week is not going to make me feel very hopeful that the economy is turning around and this feeling will probably lead me to continue living as frugally as possible. I wonder how many others will feel the same way? Read more »
2008 turned out to be a turbulent year. It was a year marked by many new buzz words. Change and bailout made that list. But if there is one word that was overlooked that best describes 2008, I would have to pick the word low. Not a very profound word, but it seems to me, a very appropriate word. From weather temperatures falling to all-time lows around the country, to stock markets taking the lowest dive since the Great Depression, to interest rates falling to a new record low, to housing prices declining and continuing to fall, to the sitting president’s approval rating. Well, you get the picture. It seems like nothing was left untouched by low. When we celebrated the count down to 2008, little did we expect that it would be a year of this bottomless, un-ending ride downhill. We partied like it was 2008, made resolutions we knew we wouldn’t keep, and cheered in that new year with the usual innocent glee and optimism that welcomes each new year, totally unaware of what was in store for us as the year progressed. Read more »
I don’t need to remind you that when President-elect Barack Obama takes office, he will face what may well be the bleakest economic outlook since World War II. Over the past couple of years, we have stood by and watched as personal income has slowed to a crawl and then felt helpless and stressed these last few months because the economic forecasts have spiraled downward with ungainly speed. Today, many experts believe that unemployment could reach 10 percent by the end of next year and our economy could fall $1 trillion short of its full capacity. This translates into more than $12,000 in lost income for a family of four. This is on top of the money we have already lost in our investments and the value of our homes. But, this country will soon swear in a new president with a new plan providing us with a new hope. Read more »
I love what I do, I make decent money, my kids are grown up and independent and I am strong and healthy. Call me oblivious, but I was at a point in my life where I had few worries and every day held a new promise. It’s strange, but when the economy was stable and my investments were growing, I hardly gave much thought to retirement. I knew that I was going to wait until I reached 66 but I didn’t think much past that. However, that seems to have changed considerably since this past October. Lately every thought in my head, every plan that I make seems to be overshadowed by the damage done to my retirement fund. I can’t stop thinking about my future; will I have enough money or will I have to work longer? With the contributions I have been making over the years, I always assumed that I would have more than enough to settle into my golden years without worry but, I can’t loose this nagging feeling that it isn’t going to be enough. I have talked to friends who feel the same way too. It’s such a rude wake up call that none of us were expecting and it is coloring every move we make.
An article in US News & World Report reminded me to let go of these negative thoughts because there are still many reasons to be optimistic about my retirement prospects. One of the best reasons is that Social Security guarantees cost-of-living increases. I had forgotten this simple fact and even though most years that increase isn’t much, it does help. The government is going to have to find a better way to manage Social Security, but they are never going to do away with it for those of us who have already paid into it. You know it’s funny, but as I read this article, I also realized that I don’t need to start drawing down my 401K immediately after I retire. I can wait until I am 70 1/2, so that still gives me 10-1/2 years to recoup my losses (not 6) if I need it. Compound that with the fact that I am still investing regularly and getting bargain prices, means that my losses should evaporate much more quickly when the economy begins its upswing. There are still some concerns I have about medicare and health insurance in general, but I need to see what this new administration proposes before I decide what I need to do about that. Right now, while I am working, I have good insurance so I don’t need to worry about that for a while.
I know we are in for a bumpy ride and a lot can happen in the next six years but I think that things are going to be financially okay for me and I will be able to stick with my retirement goals. If not, I will work another year or two. After all, it’s not the worst thing that could happen.
In October, when the stock market did a free for all, Jane Bryant Quinn did the practical thing She panicked. I think many of us can identify this past October with that feeling. Traditional investment planning lulls us into a sense of security and creates an illusion of stability. But nothing happens every year exactly as planned. We do know that life is uncertain, and that uncertainty for most people especially applies to managing their personal financial affairs. It seems that even during normal economic times, some investors find themselves overwhelmed with information and conflicting advice while others don’t have the time or interest to manage their personal assets and liabilities in a disciplined manner. We create the best investment plan we can with the knowledge we have, set it aside with the faith that we are investing enough money and pat ourselves on the back when those investments grow. Then when the bears take over on Wall Street, we feel overly anxious because all of a sudden, our financial future is staring us in the face. What was gently tucked into the recesses of our minds now colors every move we make. Read more »
Downsizing, Upsizing and Rightsizing. Boomers were the first generation to be able to graduate from high school and enter the job market expecting to earn a living wage. Now, they are the first group of employees that are perceived by management as ‘LESS’ valuable than younger, entry level, lower paid Gen Xer’s entering the job market today. You probably know of at least one baby boomer who was forced to take early retirement or who was forced out of the job market due to cut backs and streamlining. These boomers find themselves too young to receive any social security benefits and apprehensive about going back to school to acquire new skills. But, without a college degree or high technology skills, many are currently working in lower paying jobs or sitting home frustrated that they want to work but can’t find employment. Compound this situation with the current inflation and a failing economy and the question arises, will our generation, the one that was promised a better life than our parents, end up worse off than our parents? Read more »
I just read some really harsh and little known statistics about the Baby Boomer generation that I want to share with you. A quarter of the more than 1 million Americans who filed for personal bankruptcy in 2007 are 55 and over. They are the fastest group of bankruptcy filers in America. In fact according to an AARP study conducted last year, personal bankruptcy filings soared by nearly 151% among people 55-64 and by almost 178% among those 65 to 74. People 75 and older saw the highest jump in filings, a whopping increase of 567% from 1991 to 2007. These are astonishing statistics, especially for the generations of people who grew up thinking that bankruptcy was a shameful occurrence. The reasons for bankruptcy and financial crisis are different for those over fifty compared to those who are younger. Most often it’s not due to excessive spending, but rather the bankruptcies may be attributed to high health care costs due to serious illness and expenses not covered by insurance. Also, some seniors go into debt trying to help their children or grand children during these difficult times. No matter how old we get, it is in our nature to take care of our children first. Those over fifty also tend to use their credit cards to charge necessities like groceries, unanticipated home repairs and especially medical expenses and prescription drugs. Read more »