“Personal Finance: Rich man, poor man - Washington Post” plus 1 more |
| Personal Finance: Rich man, poor man - Washington Post Posted: 30 Sep 2010 10:22 AM PDT "I've been rich and I've been poor. Believe me, rich is better." The bawdy 1930s actress Mae West may have been joking when she said that, but her words aren't so funny given new figures just released by the Census Bureau that show the gulf between the rich and the rest of America is growing alarmingly large. The top-earning 20 percent of Americans - those making more than $100,000 each year - received 49.4 percent of all income generated in the U.S., compared with the 3.4 percent earned by the bottom 20 percent of wage-earners. Three states - New York, Connecticut and Texas - and the District of Columbia had the largest gaps between rich and poor, reports Hope Yen of the Associated Press. At the city level, huge income gaps were found in New York, Miami, Los Angeles, Boston and Atlanta. The income gap may also be impacting marriage. Sociologists say younger people are increasingly choosing to delay marriage as they struggle to find work and, as a result, put off making long-term commitments. Here's the thing. We all have to be concerned about this widening gap, even you're doing well. The rich do live better. Compared with the millions living below the poverty line, they have the means to buy healthier food. They have access to better health care. They can pay for their kids to go to college without sinking their household into debt for decades. They can afford housing without plunging their household into debt until they're old and gray. And while many of us have achieved middle class status, that position, for many, is just a paycheck away from poverty. As many people have learned, they have income wealth but not enough net worth to sustain a long stretch of unemployment or major illness. "Beyond what Congress can do immediately, it's clear that America needs a broader movement to create a more just and higher-wage economy," writes the Post's Katrina vanden Heuvel. "This devastating economic reality has the potential to create new political alliances -- and shape a 21st-century anti-poverty movement. Such a movement is urgently needed because the voices of the poor, of workers and of those struggling to get by are barely heard in the halls of power these days." What do you think? The Color of Money Question of the Week: How concerned are you about the growing gap between the rich and poor? Send your comments to colorofmoney@washpost.com. In the subject line put "Rich Man, Poor Man." Retiring the Retirement Goal In 1998, 11.9 percent of workers 65 and older remained in the labor force. In 2008, 16.8 percent of seniors kept working past 65. This year, 18 percent of older workers say they will keep working. By 2018, the Bureau of Labor Statistics projects 22 percent of older workers will still be working, reports CNNMoney.com writer Jessica Dickler in 'I'll work till I die': Older workers say no to retirement. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
| Personal Finance Insights: Insuring your health - Abington Mariner Posted: 30 Sep 2010 04:31 AM PDT In observance of National Breast Cancer Awareness Month, here we outline the resources that are available for obtaining health and disability insurance, as well as meeting your medical expenses on a pre-tax basis.
Health insurance For most working individuals, health insurance is available as an employment benefit. However, if your employer does not offer health insurance, you do not receive a spousal benefit through a working partner, or you do not work, you do have options. If you are a woman who is (1) at least 40 years of age, (2) meets income guidelines, and (3) does not have health insurance, or your insurance does not include clinical breast exams and mammograms, you should contact the Women's Health Network to receive these and other health services free of charge. Commonwealth Care and Commonwealth Choice are two other state-sponsored programs for obtaining health insurance. Commonwealth Care is a low- or no-cost health insurance program for uninsured, qualifying adults. To be eligible, the income for an individual and for a family of four cannot exceed $32,496 and $66,156, respectively. Two additional income-eligible health insurance programs for Massachusetts' residents are MassHealth (Medicaid) and the Medical Security Program, which is for those receiving unemployment benefits. Commonwealth Choice, on the other hand, was established so that individuals, families, and even companies can compare health insurance plans that meet the state's standards of quality and value. This program can be used by those who exceed the income limits of Commonwealth Care. Under Massachusetts law, insurers are unable to deny coverage to individuals with pre-existing conditions. Further, parents may keep their young adult children on their health plan until age 26 or two years after they no longer claim them as dependents, whichever occurs first.
Medical expenses To fund the cost of out-of-pocket, medical-related costs not covered by your employer-sponsored health plan, you may have access to either a flexible spending account (FSA) or a health savings account (HSA). An FSA currently allows for pre-tax contributions of up to $5,000 per year, though the recently passed federal legislation will reduce that amount to $2,500 beginning in 2013. If offered by your employer, consider contributing as much as you think you will need, but no more. If you contribute in excess of your reimbursable expenses in any plan year, you will forfeit the excess. HSAs are provided to employees who are enrolled in a high deductible health plan. Like the FSA, contributions are made on a pre-tax basis, but unlike an FSA, you may accumulate your HSA balance across plan years. The account balance can be invested like an IRA, which can make an HSA an attractive savings vehicle, especially for younger, healthier participants. For 2010 and 2011, the annual contribution limits are $3,050 for an individual and $6,150 for a family, with an additional $1,000 allowed if the participant is at least 55 years of age.
Disability insurance To insure against the loss of income from a disability, you may want to consider long-term disability insurance purchased either through your employer or privately. Most policies will reimburse you for 60 percent of your pre-disability income once you are disabled for 90-180 days. Social Security also has a disability benefit, but it is only available if you will be unable to work for at least one year or your condition is terminal. The payout averages only 40 percent of pre-disability income, with higher earners receiving a lower percentage. Selecting health and disability insurance are not only health-related decisions, but decisions affecting your financial health, so be sure to assess your risks and how best to protect against them. Louis E. Conrad II is a Lexington resident and president of COMPASS Wealth Management, LLC in Lexington. He may be reached at (781) 862-7030 or info@compassinvest.com. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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