Since 2008, working families have done everything they can to get by – changing spending habits, paying down debt, taking on 2nd (or 3rd jobs), digging into savings and retirement funds, and even cutting back on medical care – but they’re still falling behind.
Are big corporations taking over American elections? It depends whether you ask liberals or conservatives, who can’t even agree on the basic facts.
In the liberal universe, big corporations have swallowed politics. Common Cause President Bob Edgar summed up this version of reality at a press conference in March, declaring: “We, the people, will not stand idly by while the country’s major corporations use their massive wealth to buy our democracy.”
In its May 2012 Plastic Safety Net survey, research and advocacy company Demos surveyed 997 low- and middle-income American households that carried credit card debt for three months or more — and looked at how the recession and the Credit CARD Act of 2009 have affected American households.
As we all sit around waiting for the Supreme Court to hand down decisions on a whole handful of whoppers — the Affordable Care Act, the Arizona "Papers, Please" law — it was something the Court didn't do this week that may be the most overlooked matter of all. It has before it a case from Montana whereby that state's supreme court upheld Montana's 100-year-old ban on corporate campaign contributions in the face of the U.S. Supreme Court's decision in the Citizens United case.
American workers are being ripped off by excessive retirement plan fees — which may force them to work longer or live less comfortably in their golden years, according to a recent study.
For the average US household, the high fees drain about $155,000 from their 401(k) accounts over their lifetimes, the study found.
In one example highlighted in the study, a two-wage-earner household with a median income for their age group contributed an average of 7 percent a year to their 401(k) plan over 40 years.
It’s easy to get in over your head when it comes to credit-card debt, and retirees are no exception.
According to New York-based research group Demos, those 65 and older from low- and middle-income households carried average credit card debt of $9,283 in 2012, the highest debt load of any age group in the survey.
Hmmm … 401(k) plans can help you save money for retirement, but they many also cost you more than you realize. According to a new study from research firm Demos, the average American couple pay nearly $155,000 in 401(k) fees in the course of building up their proverbial nest egg; wealthier couples could pay nearly $278,000. These fees can reduce 401(k) savings by an average of 30 percent.
With hidden 401(k) fees back in the headlines, financial advisers say that in many cases it just doesn’t pay to leave your money in these plans—especially once you retire or switch employers. Recent findings from Demos, a research group, include this zinger: hidden fees may claim 30% of your savings.
A recent headline in the Los Angeles Times managed to rile both supporters and detractors of the 401(k) plan industry’s opaque and often excessive fee structure. Citing new research, The Times asserted that “401(k) Fees Could Reduce Average Nest Egg by 30%.” There is definitely a problem. But that seems extreme.
Portability, ownership and innovation are three key features of 401(k) plans that make them worth keeping. That was the case laid out by Paul Schott Stevens at a "town hall" meeting in Los Angeles this afternoon. The remarks lay out a defense of the mutual fund-heavy savings vehicle even as the plans have come under attack for the fees charged by mutual fund firms.
But here's the fact that convinced me older Americans need more help managing their debt than new college grads: The age range of low- and middle-income Americans with the highest credit-card debt today is 65 and older — they owe an average of $9,283. By comparison, 18- to 24-year olds average just $2,982 in credit card debt; those aged 25 to 34 are about $5,156 in the red.
Millions of Americans with damaged credit records are at risk of being unfairly denied job opportunities by companies that use credit histories to screen applicants. Faced with growing public complaints, seven states have rightly limited the use of credit histories by potential employers. Federal, state and local lawmakers who are considering similar legislation are on the right track.
There are more than 50 million Americans with investments in 401(k) and other defined-contribution retirement-savings plans. They’re about to be getting more information about the fees they pay.
By one estimate, it could be sobering news.
Retirement-plan administrators have to provide detailed information to employers by July 1 about the fees they charge. Employers have to share that information with workers in their plans by Aug. 30, and once a year after that. The charges include investment-related fees and fees for administering a plan itself.
The 2009 CARD Act has been celebrated for helping consumers: The law limits interest rate hikes, fees, and other frustrating aspects of the credit card industry. Now, on the three-year anniversary of the bill’s signing, a report from the research and advocacy organization Demos suggests that it has successfully helped middle- and low-income households pay down their balances and avoid fees.