15 Things You Should Never Buy When You're Broke

Amanda Harding

Even when it feels like you have no money, you still have to spend a little bit of money.

Being broke sometimes extends for weeks, months, or years at a time. Reasonably, you can’t be expected to spend that entire time holed up in your house with the lights off eating nothing but ramen noodles and tap water. However, if you ever hope to get out of debt, there are certain things you need to give up purchasing when your bank account has insufficient funds.

The most important rule to follow? Be realistic about how much money you have. Then follow these simple rules to cut unnecessary spending stop buying the luxuries you don’t really need. The crazy thing is that you may realize you don’t miss them much anyway.

1. Starbucks

Starbucks Frappuccino | dontree_m/ iStock/ Getty Images Plus

This one is a cliché for a reason. And no, you’re not off the hook if you only buy “cheap” coffee to go.

Whether you hit up Starbucks for daily $5 mocha lattes or you’re only being a little indulgent by swinging through the Dunkin Donuts drive-thru every morning for your caffeine fix, the fact remains: it’s much cheaper to make coffee at home and take it with you than it is to order it every morning. If you’re broke, cutting back on this pricey habit could translate to significant savings over the course of a year.

Next: Admit it — You never use this anyway.

2. Gym memberships

Gym | Nd3000/iStock/Getty Images

You know that gym membership you signed up for, swearing you’d go at least three times per week? It’s time to stop pretending and stop paying for something you never use. Even if you do visit the gym occasionally, it’s not worth the cost if you can get a workout in for free.

Go for a walk, purchase a weight set to stash in your bedroom, and look up simple exercises to accomplish at home. Unless you’re a serious athlete training for an event, you probably don’t need professional equipment to stay in shape – especially if you’re broke.

Next: It’s time to start making this at home.

3. Mixed drinks

Cocktails | IvanZivkovic/iStock/Getty Images

You don’t have to become a teetotaler just because you’re going through a rough patch with your finances – but wasting precious funds on drinks at the bar is just silly. Unwind by staging a game night at home, purchasing your liquor on sale, and inviting everyone to bring appetizers to share. It’ll be less crowded than the bar and way less pricey, too.

Next: Go natural and save money.

4. Expensive hair appointments

Hair cut | MilanMarkovic/iStock/Getty Images

No need to let your hair grow into an unstylish mop just because you’re broke, but spending several hundred dollars touching up your highlights is unnecessary. Stick to regular trim appointments and consider letting your hair return to its natural shade if you need to save some money. Been going to a ritzy salon? Consider finding a cheaper stylist to work magic on your strands. You can find real talent for cheap if you’re willing to ask around.

Next: Save this for special occasions.

5. Going out to eat

Dining at a cafe | Rawpixel/iStock/Getty Images

Even choosing a cheaper restaurant won’t help your situation if you’re broke or in debt. Overpaying for meals plus tipping your waiter or waitress will set you back significantly – and it’s usually not even worth it. Instead, find a few quick, cheap recipes to keep in your arsenal and save restaurant meals for special occasions.

Next: You can find these for free.

6. Books

Books | ConstantinosZ/iStock/Getty Images

The new hardcover version probably costs upwards of $20 and the paperback or Kindle version isn’t much cheaper. Plus, how often have you ever read a book more than once? Rather than spending money on books, sign up for a library card and borrow them instead. It’s free.

Next: There’s a new way to enjoy this thing.

7. Vacations

Vacation | DisobeyArt/Getty Images

It doesn’t matter how good of a deal you find on that discount vacation website – going on a trip is bound to cost more money than you expect. Between transportation costs, dining, lodging, and activities, the expenses add up quickly.

But just because you’re broke it doesn’t mean you have to forgo your paid vacation time at work. Consider planning a “staycation” where you stay at home and finally tackle those projects you’ve been putting off. You can also explore the cheap or free activities right in your hometown.

Next: Don’t ever pay for these.

8. Workout classes

Yoga | Matt Cardy/Getty Images)

Like gym memberships, drop in workout classes only seem cheap. But when you’re paying $10 every time you indulge in yoga, those expenses start to become significant. Rather than paying to take classes, check out free community workouts or search YouTube for free online tutorials. Borrowing a workout DVD from a friend or the library is another great way to get in shape without spending a ton.

Next: People wish you’d spend less on this item.

9. Expensive gifts

Gift | Angel_a/iStock/Getty Images

Of course you love your friends and family, but if you’re broke, then dropping hundreds of dollars on birthday or holiday gifts isn’t wise. Instead, try making something meaningful such as a photo collage or even a homemade edible treat. The most treasured gifts come from the heart.

Next: Don’t be tricked into paying too much for this.

10. Full-priced anything

Shopping | ViktorCap/iStock/Getty Images

Newsflash: Just about everything goes on sale eventually. Resist the urge to purchase any items in the store that were just put out and only hunt for sale and clearance finds. Be wary, however – you shouldn’t buy something just because it’s a good bargain. Make sure you need it before you add it to your cart.

Next: Never pay too much for this necessity.

11. New clothing

Clothing rack | Sigefride/iStock/Getty Images

Thrift stores aren’t what they used to be. Now upscale secondhand stores sell in-season, stylish merchandise that’s just as good as new but for a fraction of what you’d pay in regular store. Some items still have tags on them! Talk to your friends to figure out the best thrift store near you or check out online secondhand stores like thredUP.

Next: Too many people spend too much on this.

12. Gas

Gas | joeshmo/iStock/Getty Images

No matter where you live in the country, gas is expensive. Consider walking or riding your bike if you can (bonus: free exercise) when you have someplace to go. If you must drive, consolidate your errands into one trip so you’re not constantly using the car when you don’t need to.

Next: Don’t believe this common purchase is cheap – it’s not.

13. Fast food

Drive thru | Justin Sullivan/Getty Images

It may be fast and convenient, but fast food is anything but cheap. You can spend a lot less cooking at home even if you spend a little more on easy meals from the grocery store. Skip the drive-thru and cook at home – it will always save you money.

Next: You don’t need to spend money on this at all.

14. Juice

Juice | Breaking The Walls/ iStock/Getty Images Plus

No one needs to drink juice. Water is free (forget bottled water) and it doesn’t have any calories. Skip buying juice and soda or if you must, water it down generously to make it last longer. A bottle of concentrated flavor drops can make your water more interesting but doesn’t cost a lot.

Next: Save your money and get this for free.

15. Anything you can borrow

Culled from Wallstreetcheatsheet

PTAD plans health insurance scheme for pensioners

Pool Photo

The Executive Secretary, Pension Transitional Arrangement Directorate (PTAD), Mrs. Sharon Ikeazor, has revealed that the directorate plans to grant health insurance to its pensioners as an additional welfare scheme to ease their plights.
Ikeazor equally re-affirmed the commitment of President Muhammadu Buhari to settle all outstanding arrears owed pensioners across the country based on his disposition to uplifting the standards of living of workers either still in active service or retired.
Ikeazor gave this assurance while speaking on its current and future initiatives during PTAD’s 2018 South-West Stakeholders’ Forum for retirees in Lagos.
“The president is interested in the plight of the pensioners that is why several efforts is being made to ascertain the numbers of the pensioners and their years of service in other to ascertain what should be their entitlement since they have left service.”
She added that the present administration led by President Buhari is responsible and responsive to their needs which they can trust.
“Our initiatives include continued engagement with the National Health Insurance Scheme for enrolment of pensioners, when they get complains, the agency look into the issues individually not based on union once it is verified they get paid” she noted.
Following the completion of the civil service verification, she said all eligible pensioners under that category had been enrolled and the payment of monthly pension to them had since commenced.
The directorate brought in over 19,000 new pensioners, who had hitherto been denied their rights to pension, into the Defined Benefit Scheme.
“They have also successfully verified, computed and put on payroll nearly 5,000 pensioners of defunct/privatised agencies such as Delta Steel Company, Aladja, Federal Housing Authority of Nigeria, Nigeria Reinsurance, and Nigerian Defence Academy Civilians,” Ikeazor stated.
She maintained that pensioners of NICON Insurance Plc would commence receiving monthly pensions in September 2018, while work on the enrolment of NITEL pensioners had reached advanced stage.
She assured that once the cash has been made available they too would be paid.
The Executive Secretary said this achievement had lifted many families out of miseries that lasted for up to 13 years in some instances.
She said that the verification of other agencies under same category would be done alongside other parastatals beginning in the fourth quarter of 2018.
Ikeazor stated that PTAD has paid pension and gratuity arrears to over 15,000 newly enrolled civil service pensioners.

“There is payment of additional 33 per cent arrears to pensioners of police, civil service and parastatals pension departments. With the last round of payments, the 33 per cent liabilities for police pensioners have now been fully settled, joining Customs, Immigration and Prisons Pension Department’s pensioners in this category,” she said.
The PTAD boss, however warned that any employee of the agency caught in act of corruption would be dealt with in accordance with the law.
However, to curb corruption and enhance transparency in management of pension , she said a full-fledged Anti Corruption and Transparency (ACTU) has been set up in the agency.
She said the agency’s employees are abreast of consequence of getting involved in pension fraud so no PTAD staff would ask for money before carrying out their duties.
Also she said the directorate has applied for the release of funds set aside in the 2019 budget to settle the remaining arrears of civil service and parastatals pensioners.
She said the purpose of the stakeholders’ forum series was to provide updates on the activities of PTAD and interact directly with its pensioners in order to obtain objective feedback from them in an interpersonal manner.
In the 10 months since the first forum in October 2017, she said, the directorate had recorded many milestone achievements based on the positive feedback it got from pensioners and other stakeholders.
She said PTAD would continue to ensure prompt payment of monthly pension to all genuine pensioners.
“Consequently, the dateline of 15th day of every month for the completion of all departmental payrolls will remain sacrosanct,” she said.
PTAD boss said her, ultimate goal in this regard is to ensure that payment of pensions is prioritised over the payment of salaries, not only by the Federal Government, but by all tiers of government.
While the Chief Commissioner Public Complaints Commission Hon Chile Wenger on his part said though they have improved on the old pension system but some of those challenges still persist that need intervention to make the process smooth.
National Union of Pensioners President, Abel Afolayan, said that funding bill for the union should be re-instated as well as outstanding arrears and salaries of workers benefits should be paid.
Afolayan said no need to continue to improve infrastructure as development strides while their members are dying of hunger. They should ensure that the life of our senior citizens are save.


Culled from Todayng

Pension fund drives 7% of Nigerian economic growth’

By Francis Arinze Iloani

•  

The pension fund assets are contributing about 7 per cent to the growth of the economy as evident in the 7 per cent contribution to total Gross Domestic Product (GDP).

Details obtained from the National Pension Commission (PenCom) showed that N8.14 trillion pension assets as at the end of May are not only available to fund retirees’ pension obligations but also are investible funds available for economic development.

“These investments are allowed in structured outlets such as quoted equities, bonds, money market instruments, infrastructure funds and private equity,” PenCom stated.

The pension regulator said while the non-availability of these products has limited pension funds participation, Pension Fund Administrators (PFAs) have invested over N50 billion in the first federal government’s N100 billion Sukuk issued recently for the construction and rehabilitation of some major roads in the country.

PFAs have also invested about N7 billion in the first N10.69 billion five-year Sovereign Green Bond in December 2017, to fund some environmentally compliant renewable energy projects.

“This implies that the Contributory Pension Scheme (CPS) is fully funded unlike the old Defined Benefits Scheme, which was dependent on budgetary allocations for payment of pensions. Consequently, it contributes to the fulfilment of the first Sustainable Development Goal by reducing old age poverty in Nigeria,” the Commission stated.

 

Culled from Daily Times

Millions of pension savers 'risk being unable to afford a comfortable retirement'

Seven in 10 people think retirement income targets would encourage them to save more

• Vicky Shaw

30.4 million working-age people across the UK risk not being able to afford the lifestyle they want in later life ( Getty Images/iStockphoto )

Millions of pension savers are in the dark about whether they are on track for a comfortable retirement financially, a report warns.
Four in five people are not confident they are putting enough aside for later life, the Pensions and Lifetime Savings Association (PLSA) said.

This equates to 30.4 million working-age people across the UK who risk not being able to afford the lifestyle they want in later life.

The findings were made in the PLSA's Hitting the Target report - which aims to help people achieve better retirement incomes.

It calls for the introduction of retirement income targets showing the lifestyle someone could afford on different levels of income. The PLSA has commissioned researchers to develop these.
Seven in 10 people think retirement income targets would encourage them to save more, increasing to more than 78 per cent of millennials aged 18 to 34, the PLSA found.
While a third of people say they could save more for retirement, uncertainty about how much cash they will need may be holding people back, the report suggests.
Automatic enrolment into workplace pensions was introduced in 2012 to head off fears of a later life savings crisis.

Minimum contribution rates into workplace pensions are gradually being stepped up to encourage people to save more.
But many people wrongly assume that this minimum level is the target they should be aiming for to be comfortably off, the report found.
The minimum auto-enrolment pension contribution rate is 5 per cent, increasing to 8 per cent next year. Rates are made up of contributions from staff and employers.

Just over half of people wrongly believe the minimum rates are the recommended amount to save.

The report also said minimum contribution levels for automatic enrolment should be boosted from 8 per cent of band earnings to 12 per cent of total salary between 2025 and 2030, with at least 50 per cent of this coming from employers to ensure it is affordable for savers.
Nigel Peaple, director of policy and research at the PLSA, said: “Millions of savers are in the dark about whether they're on track for the lifestyle they want in retirement.
“With future generations unlikely to have the same levels of property wealth, or final salary pensions, as current retirees do, it's vital more is done to ensure people can cover the costs of later life.”

Around 1,500 people aged 18 to state pension age (SPA) were surveyed for the report.
Sir Steve Webb, a former pensions minister who is now director of policy at Royal London, said: “One of the most commonly asked questions in pensions is: 'How much do I need to save?'.
“A system of retirement income targets would help people to work out what sort of retirement they could expect if they save at varying levels.
“This would also enable pensions to be presented in a positive light as giving people choices over their quality of life in retirement, rather than trying to make people feel guilty about not saving enough - a strategy which has never worked in the past.”

Baroness Altmann, another former pensions minister, said: “It is certainly true that people are not sure how much they should be contributing to a pension, to secure themselves a comfortable retirement.
“It is also very worrying that so many people think the auto-enrolment minimum levels are an appropriate amount - they are unlikely to deliver a large private pension.
“But most people need help with financial planning and would benefit from having an independent expert adviser to monitor their savings over time and recommend what they should do.”

She continued: “Pension planning is not an exact science and your pension fund needs to be monitored regularly. If you do not have enough saved, you could decide to keep working longer and save more.”
Speaking generally, Alistair McQueen, head of savings and retirement at Aviva, said that to build a decent-sized pot the insurer would advocate starting saving at least 40 years before retirement; saving at least 12% of earnings every month including employer contributions; and aiming to build at least 10 times annual earnings in a pot by retirement.
Mr McQueen said: “It's good to see the PLSA agree with Aviva's view that minimum automatic enrolment contributions should be increased from 8 per cent to 12 per cent of earnings by 2030.”

A Department for Work and Pensions spokesman said: “Automatic enrolment was introduced so that people who were previously saving nothing towards their retirement could start saving into a workplace pension. Almost 10 million people have been enrolled so far.
“We have brought in phased contribution rate increases for workplace pensions and are committed to an ongoing review to ensure we continue to balance the need to save with everyday costs.
“For those who would like guidance on their pension, Pension Wise is a free and impartial government service which can help.”


Culled from Inedependent

This Is the Worst State to Live in If You’re Over 65

• Emma Bleznak

As you prepare to retire or relocate, one crucial factor many Americans let slip is affordability. While the idea of a worry-free retirement is enviable, it isn’t realistic. Some states make retiring easier — and more affordable — while others are tougher on your budget and lifestyle.

This analysis of popular locations provides insight into which states are tougher to retire in, which are expensive to live in general (page 7) and the worst state to live in that will definitely surprise you (page 15).

15. South Carolina

Assisted living costs $34,000 on average in South Carolina. | Sean Pavone/iStock/Getty Images

• $34,000 annual cost for assisted living
• $77,000 annual cost for nursing home

The warm, summery state is a popular destination for retired couples, singles, and even families. However, when it comes to the cost of care for seniors, it rates around average.
The average cost for one person to seek assisted living is $34,000, while nursing home costs more than double that figure. Hiring a home health aide may be the best bet for senior citizens who need extra help — on average, an aide costs $45,000 annually.
Next: This state is fairly affordable and fun for retirees.

14. Tennessee

Tennessee is relatively affordable. | SeanPavonePhoto/iStock/Getty Images

• $43,000 annual cost for assisted living
• $73,000 annual cost for nursing home

Tennessee is pretty affordable — and fun — for senior living. It’s about $10,000 cheaper than the national median to live in a nursing home, and an in-home health aide is less than $50,000.
Where retiring is concerned, a two-bedroom in Tennessee will run you an average of $995 a month. According to Numbeo, the cost of living in Nashville ranks 169th out of 534 major cities worldwide.
Next: The perks (and downfalls) of retiring in the Lone Star state.

13. Texas

Some parts of Texas are more affordable than others. | Roschetzky/iStock/Getty Images

• Texas scores high for the cost of senior care, the cost of living, and elderly and family support services
• The only issue is Texas’s size

The median cost for a nursing home in the Lone Star State is $54,000. While the median is cheaper than the national average, the costly cities of Texas make living in a flourishing area tough for most retirees.
“I live in Houston, and the cost and availability of senior services here is going to be vastly different than in many other parts of the state,” Jason Biddle, a senior care veteran and creator of The Helping Home, told Caring. “But if you live in Texas and you need to stretch your dollar, the good news is you could probably find a more affordable county without leaving the state.”
Next: This state balances its high cost of senior services with its low cost of living

12. Ohio

Senior care is expensive in Ohio, but the overall cost of living is low. | Ken Winters, U.S. Army Corps of Engineers/Wikimedia Commons

• Cost of senior living in Ohio is on par with national medians
• The average nursing home cost in Ohio is $81,000

While the Buckeye State starts off our list of costly senior care states — assisted living facilities run around $50,000 — the low cost of living in general balances it out. An in-home aide is the cheapest senior living option at $48,000 a year.
“Senior services might cost a bit more than some of these other Top 10 states, but the low cost of living winds up balancing that out a little bit,” Stephan Weiler, a professor of economics, confirmed.
Next: This state has popular (and expensive) cities for retired Americans.

11. Arizona

Arizona is a popular retirement destination. | lucky-photographer/iStock/Getty Images

• Multiple Arizona cities are popular retirement destinations
• It ranked third for the overall cost of living and 23rd for the cost of senior care services

Arizona is an increasingly popular state for retirees — Scottsdale, Arizona is the most popular city nationwide for seniors — and it’s still fairly affordable. The annual costs for assisted living facilities are a bit higher than the national median, while nursing homes cost about $10,000 less ($76,500).
The average rent for a studio in Arizona is $725, and compared to other major U.S. cities like Miami and Dallas, living in a hub like Phoenix is significantly cheaper.
Next: The seafood may be great, but it doesn’t come cheap.

10. Maine

Maine is expensive, but the quality of senior support services is high. | krblokhin/iStock/Getty Images

• Being a senior in Maine isn’t cheap
• Assisted living facilities and nursing homes will run you $24,000 more than the country’s median cost

While Maine is an expensive city to retire in — it ranks 39th for cost of living and 39th for the cost of senior services — it also ranks high for the quality of its elderly support services.
“For having such potentially secluded regions I think that’s a pretty promising stat for Maine,” Jim Miller, the publisher of SavvySenior.org told Caring.com. “But if you live in a part of the state where [they] actually have abundant access, I imagine it’s probably going to be expensive.”
Next: This great state for seniors comes at a great cost.

9. New Hampshire

Senior care costs more than average in New Hampshire. | travelview/Getty Images

• The median costs for home aides, nursing homes, and assisted living facilities all exceed the national rates

The winter chill isn’t the only challenge New Hampshire presents for seniors: the Granite State ranks 44th for the overall cost of living and 45th for senior care services. The median cost per year for a home aide is over $60,000 and a nursing home will run you over $115,000 a year.
Still, New Hampshire proves a great place for access to supportive senior and family programs (it ranks 12th).
Next: This state’s unique landscape makes for an expensive retirement destination.

8. Delaware

A year in a nursing home in Delaware costs more than $127,000, on average. | Eva Hambach/AFP/Getty Images

• The state is unique as it has both rural and coastal towns
• The cost of living is moderately expensive but the price of everyday life fluctuates

Delaware has rural and isolated areas as well as coastal towns and cities that run fairly expensive compared to other U.S. cities. Costal, popular cities like Wilmington are around 8% more expensive than the national average for cost of living according to Payscale.
Delaware ranks 33rd for the overall cost of living and 41st for senior affordability. The median cost to live in a nursing home each year is $127,750, significantly higher than the national average of $86,500.
Next: It’ll come as no surprise this city is expensive regardless of your age

7. New York

Unsurprisingly, New York is expensive for retirees. | Sean Pavone/iStock/Getty Images

• New York ranked 13th for elderly and family caregiver support services
• It’s second-to-last for the overall cost of living

The median costs for home aides and assisted living facilities in New York are in line with the national medians. A nursing home, on the other hand, will run you about $47,000 more than the national average at over $130,000.
“I often say New York City and the surrounding metro area is one of the best places for seniors,” NYC-based eldercare advisor Joanna Leefer told Caring.com. “… it has so many accessible services and you can easily get almost anywhere you need to. If you’re in an upstate suburb it might not be as easy, but it will be cheaper.”
Next: 

6. Alaska

Alaska’s remoteness makes it expensive for seniors. | Z-lex/iStock/Getty Images

• This state ranked last for the overall cost of senior care services
• The median cost of a nursing home is nearly $300,000

Alaska senior care services are expensive for the exact opposite reason New York is — it’s remote and undeveloped nature. Hiring an in-home health aide costs nearly $63,000 and a nursing home is $206,000 more than the national average cost.
On a more positive note, Alaska ranks 10th for elderly caregiver support. Caring.com believes this is a result of the relatively high population densities in the state’s major cities, Anchorage and Fairbanks.
Next: This state is pretty expensive to retire in … and we wouldn’t want to

5. North Dakota

North Dakota ranks near the bottom for the quality of elderly and family caregiver support. | Andrew Burton/Getty Images

• Similar to Alaska, North Dakota’s remote nature affects affordability
• The median cost for a nursing home is $127,630 annually

North Dakota placed 47 for the quality of elderly and family caregiver support. Its weather poses a problem for plenty of seniors as well. “Few people, especially seniors, can handle a climate like North Dakota’s … so you don’t have dense, urban clusters like you do in some other states,” said Jim Miller.
The best financial option for senior care is assisted living — the median cost is $36,000 a year, which is on par with other states and the national average.
Next: It may be your dream to retire here, but it’s also extremely expensive.

4. Hawaii

Life in Hawaii is expensive. | Digital Vision/Getty Images

• Hawaii’s climate is to blame for the high cost of elderly care and living in general

Similar to North Dakota, Hawaii’s weather is to blame for the high cost of elder care services. Unlike North Dakota, it’s an extremely popular and desirable spot to retire. Hawaii falls in last place for the overall cost of living — housing, food, drinks, and insurance will break the bank there — and nursing homes are expensive as well.
The popular tourist destination charges an average $137,000 annually to live in a nursing home and around $60,000 a year for an in-home health aide.
Next: The most densely-populated U.S. state costs more than you’d expect

3. New Jersey

Living in New Jersey is costly. | SeanPavonePhoto/iStock/Getty Images

• New Jersey is expensive due to its position as the most densely populated state in the U.S.
• It’s one of the top 10 most expensive states for senior care services

The Garden State is prepared to handle senior services — it ranked 24th for caregiver support — but these services don’t come cheap. Hiring a home health aide is the best option as it falls in line with the national average, but the median cost of one year in a nursing home is $120,450, more than most families can afford.
The annual cost of residing in an assisted living facility is $24,000 above the national median as well. And while the coastline cities are enviable retirement destinations, they’ll burn a hole in your bank account for sure.
Next: All of this state’s elder care costs exceed national averages

2. Rhode Island

East Coast states like Rhode Island tend to be more expensive. | Source: iStock

• Rhode Island reveals one truth about East Coast states and senior living
• All of its elder care costs exceed the national averages

The analysis found that Rhode Island inevitably has more resources for seniors, yet it still only ranks 34th for family caregiver support. “Dense, popular, East Coast states are always going to be more expensive across the board,” Stephan Weiler revealed.
The New England state ranked 40th for the cost of senior care and 42nd for the overall cost of living. An assisted living facility will run you (or your parents) $61,860 per year while a nursing home puts you back $101,835 on average.
Next: The most expensive state for your aging parents, revealed

1. Wyoming

Wyoming is the most expensive state for retirees. | Karen Bleier/AFP/Getty Images

• It’s not an expensive state to call home
• It’s still the most expensive state for aging adults

Wyoming isn’t necessarily an expensive state to call home, but its supportive policies and programs — or lack thereof — make it the most expensive state for retirees.
“This isn’t all that surprising given how rural and sparse Wyoming is,” Weiler said. “They simply have fewer facilities and support networks than other more densely populated parts of the country.”

Wallstreetcheatsheet

UK pension funds get green light to dump fossil fuel investments

Government directive means trustees will be able to push harder for green investments

Patrick Collinson and Julia Kollewe

Young people are increasingly questioning where their money is being invested, says secretary of state for work and pensions Esther McVey. Photograph: Justin Sullivan/Getty Images

Managers of the £1.5tn invested in Britain’sworkplace pension schemes are to be given new powers to dump shares in oil, gas and coal companies in favour of long-term investment in green and “social impact” opportunities.
Government proposals published on Monday are designed to give pension fund trustees more confidence to divest from environmentally damaging fossil fuels and put their cash in green alternatives if it meets their members’ wishes. Until now many pension trustees have been hamstrung by fiduciary duties that they feel requires them to seek the best returns irrespective of the threat of climate change.
The new rules, though couched in opaque legalese, are a coded go-ahead for pension funds to sell shares in fossil fuel companies if they believe that they could turn into “stranded assets”. The term refers to companies’ coal, oil and gas deposits that may not ever be monetised as the world transitions to a low-carbon economy.

In the paper published on Monday, Clarifying and Strengthening Trustees’ Investment Duties, the Department for Work and Pensions (DWP) said: “Our proposed regulations are intended to reassure trustees that they can (and indeed should) take account of financially material risks, whether these stem from investee firms’ traditional financial reporting, or from broader risks covered in non-financial reporting or elsewhere.”
Environmental campaigners reckon that investments amounting to trillions of dollars in fossil fuels – coal mines, oil wells, power stations, conventional vehicles – will lose their value when the world moves decisively to a low-carbon economy.
They believe that fossil fuel reserves and production facilities will become stranded assets, having absorbed capital but are unable to be used to make a profit. This carbon bubble has been estimated at between $1tn (£753m) and $4tn, a large chunk of the global economy’s balance sheet.
But the DWP warned that the new rules do not give carte blanche for activist groups to bully pension funds into selling out of fossil fuels. “These proposals are not intended to give any support to activist groups for boycotts or divestment from certain assets,” the DWP paper said. “Trustees have primacy in investment decisions and, whilst they should not necessarily rule out the ability to take account of members’ views, they are never obliged to, and the prime focus is to deliver a return to members.”
Unison, the public sector union, launched a campaign in January to encourage local government pension funds – which have invested £16bn in the fossil fuel industry – to divest from carbon.
The new rules, subject to a consultation period, have been brought forward by secretary of state for work and pensions, Esther McVey.
“As we see the younger generation care more about where their money is going, they are also increasingly questioning that their pensions are invested in a way that aligns with their values,” she said. “This money can now be used to build a more sustainable, fairer and equal society for future generations.”
Climate change campaigners said they were delighted at the proposals. Bethan Livesey, head of policy at ShareAction, said: “ShareAction has been pushing for changes to these regulations for years.
“For too long, many pension schemes have disclosed little more than vague, high-level statements on their approach to ESG [Environmental, Social and Governance] factors, and it is unclear what, if anything, is being done behind the scenes.
“Pension schemes seem to fall into three camps: those who understand the financial value of taking ESG factors seriously and do so, those who say they understand but do very little and those who have no clue. These changes to the regulations should at the very least enlighten the third group.”

Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

A growing number of UK and European insurance companies have started selling holdings in coal companies and refusing to insure their operations. More than £15bn has been divested by insurers including Allianz, Aviva, Axa, Legal & General, Swiss Re and Zurich in the past two years, according to Unfriend Coal Network, a global coalition of NGOs and campaigners including 350.org and Greenpeace.
Last week Legal & General said it would exclude China Construction Bank, Russia’s Rosneft, the Japanese carmaker Subaru and five other companies that have failed to act on climate change from its Future World Fund.
The Rockefeller Family Fund, a charitable fund of the Rockefeller family, which made its fortune from Standard Oil, has started divesting from fossil fuel holdings.
However, Cambridge University has just ruled out divesting from oil and gas in its £6.3bn endowment fund – despite public pressure from hundreds of academics and a hunger strike by three undergraduates. Cambridge said it had no direct investment in fossil fuel companies and wanted to avoid any direct investment in coal and tar sands, while keeping indirect investment to a minimum.

Since you’re here …

… we have a small favour to ask. More people are reading the Guardian than ever but advertising revenues across the media are falling fast. And unlike many news organisations, we haven’t put up a paywall – we want to keep our journalism as open as we can. So you can see why we need to ask for your help. The Guardian’s independent, investigative journalism takes a lot of time, money and hard work to produce. But we do it because we believe our perspective matters – because it might well be your perspective, too.

I appreciate there not being a paywall: it is more democratic for the media to be available for all and not a commodity to be purchased by a few. I’m happy to make a contribution so others with less means still have access to information. Thomasine, Sweden

Culled from The Guardian 

How Does the Broke Middle Class Really Afford Retirement?

• Emma Bleznak

The middle class isn’t poor, but they’re certainly not rich. Turns out, this generation is broker than ever — and many of them are struggling to retire at a reasonable age, let alone at all.

These are six tricks and tools the middle class uses to afford retirement, but they often  come at a cost. We’ll also let you know how much you really should have saved for retirement (page 7).

1. Social Security

It’s hard to make ends meet on Social Security alone. | William Thomas Cain/Getty Images

Social Security checks — often dubbed “welfare for the middle class” — provide monthly stipends to retirees based on their working income. According to The Washington Post, Social Security benefits have lost nearly a third of their purchasing power in the last 18 years.
Almost 20% of retired adults 65 and older rely on Social Security as their sole form of income. Thirty-three percent use it as the majority (90%) of their income, while a staggering 60% rely on it as half their income. The average monthly Social Security benefit for 2017 was $1,342.
Next: Here’s how retirees are paying for healthcare.

2. Medicare

Medicare is a huge help, but it isn’t always enough. | Didesign021/iStock/Getty Images

Many middle-class adults 65 and older rely on Medicare to cover expensive but common medical services. Medicare will take care of prescription drug purchases, organ transplants, and lab tests. However, it won’t take care of basic vision, hearing, and dental check-ups.
Medicare Part B — which covers the costs of doctor visits and outpatient services — is going to be pricier in 2018 for Americans collecting Social Security checks. Since Social Security automatically pays the Part B premium, Americans were paying around $109 a month for Medicare coverage in 2017. In 2018, around 28$ of Part B enrollees’ Social Security cost-of-living adjustment (COLA) increase won’t be enough to cover the premium.
Next: This program covers 20% of Americans nationwide.

3. Medicaid

Medicaid pays for the majority of seniors living in nursing homes. | Rawpixel/iStock/Getty Images

Medicaid — not Medicare — pays for most of nursing home or home care for the elderly when older adults run out of savings. According to CNN, Medicaid pays for around two-thirds of the 1.4 million elderly currently living in nursing homes. It also covers 20% of all Americans.
While the GOP’s 2017 battle to repeal Obamacare failed, it scared many middle-class Americans. The legislation would have taken an ax to Medicaid — leaving more people than before without government-subsidized insurance.
Next: You’ll be surprised how many people work after retiring from full-time positions.

4. Part-time jobs

Some people stay working past retirement age. | Ulrik Tofte/iStock/Getty Images

In May 2016, 18.8% of Americans 65 and older still held a job.  As life-expectancy increases from decade to decade so does the need to save more — as well as the desire to continue giving back to our community. Plenty of Americans choose to continue working for more than just the money. Since you can work and still receive Social Security benefits — although your job earnings may impact how much you receive — many Americans choose to seek the best of both worlds come 65.
Many retirees work seasonal part-time jobs, choose to profit from their hobbies or work in the “gig economy” driving for Uber or Lyft.
Next: Depending on your assets, this may be the way to go.

5. Mortgage-free by retirement

Retirees should be mortgage-free by the time they leave work. | monkeybusinessimages/iStock/Getty Images

Most financial planners recommend their clients pay off the mortgage on their house before they retire. The percentage of homeowners of retiring age with mortgage debt increased from 22% to 30% from 2001 to 2011. Homeowners 75 and older with debt skyrocketed from 8.4% to 21.2%.
However, there are still plenty of middle-class Americans finding ways to pay their mortgage off before they lose their regular income. Fifty-four percent of retired Americans were mortgage-free in 2017.
Next: We bet you never considered this career path after age 65.

6. ‘Workampers’

Some seniors travel the country working seasonal jobs. | Kevork Djansezian/Getty Images

A Washington Post story on the broke middle class revealed a new type of way older Americans are retiring: Buying campers and hitting the road to work as they travel. These “workampers” sell their homes, purchase RVs, and pick up seasonal jobs as they travel the country.
The paper highlighted Amazon’s “CamperForce” program, which “brings together a community of enthusiastic RV’ers who help make the holidays bright for customers of Amazon.com.” The program has campsites in 27 states where retirees spend 3 to 4 of the winter months picking, packing, stowing, and receiving shipments. The program’s benefits include paid campsites, time and a half overtime, life and AD&D insurance as well as medical and prescription drug coverage.
Next: Did you know this is how much you should be saving?

Here’s how much retirement money you should have

Start saving for retirement early. | jerry2313/iStock/Getty Images

An alarming 70% of American adults have less than $1,000 in their savings accounts. Experts have crunched the numbers to identify how much you should have saved at each age milestone for a comfortable retirement.
By age 30, aim to have the equivalent of your annual salary saved. Every five years, increase this in single increments: By 35, you should have twice your annual salary saved and by 40-years-old you should have three times. By 65-years-old this will leave you with a savings equivalent to eight times your annual salary.
Next: Despite their lack of savings, this is when the average member of the middle class retires.

The middle class is actually retiring earlier

People are retiring early — whether they can afford it or not. | Rhona Wise/AFP/Getty Images)

One in 5 Americans has no savings account and nearly half retire with nothing in the bank. A 2015 U.S. Government Accountability Office report revealed that almost one-third of U.S. households “headed by someone 55 or older” are void of pensions and retirement savings.
About half of America retires by age 65, while 22% retire from 66- to 74-years-old. In 2000, the average age of retirement was 62. As of 2017, it’s 63 — still under the recommended age of 66.

Wallstreetcheatsheet

The 8 Crazy Ways North Korea Makes Money Despite Sanctions

• Jason Rossi

In case you’re not paying attention North Korea has been in the news a lot lately. As usual, it’s for all the wrong reasons.

Continuing to develop of nuclear missiles that threaten the United States. A bold assassination of the half-brother of leader Kim Jong Un. The lavish diet and creature comforts he enjoys while most North Koreans go hungry.

Whether or not Kim is crazy enough to actually launch a missile is debatable. What isn’t up for debate is that North Korea continues finding ways to fund its nuclear ambitions. Sanctions aren’t keeping North Korea from making enough money to build nuclear weapons. This is how the country does it.

1. Coal

North Korea is all about the black market. | EvgenyMiroshnichenko/iStock/Getty Images

Yes, China pumped the brakes on importing North Korean coal early in 2017, and Reuters reports coal, lead, and iron imports to China from North Korea dropped drastically. Yet many experts believe the country is still making money by selling coal to its neighbor to the north. How? By engaging in off-the-books trade that is harder to trace.
Next: Talk about making money.

2. Counterfeiting

North Korea has been counterfeiting Chinese currency as well. | halduns/iStock/Getty Images

If you can’t legally make money, why not just fake it? That’s North Korea’s thinking. In 2009, a man was sentenced to more than 12 years in prison for successfully passing millions of dollars of counterfeit bills in Las Vegas casinos. It wasn’t an isolated case. That same year, a Taiwanese woman shipped close to $400,000 in counterfeit U.S. currency to herself. She was caught by the FBI, but only after smuggling and spending thousands of dollars of counterfeit money. It’s not just U.S. currency that’s being faked, as United Press International writes that Chinese currency is being printed in North Korea.
Next: A world wide web of deceit.

3. Cybercrime

They’re stealing money through hacking. | iStock/Getty Images

It is believed North Korea launched a 2014 hack on Sony Pictures. British intelligence believes North Korea launched a malware attack that hit a number of hospitals and health centers, and CNBC reports the country was behind a cyberheist that saw $81 million disappear from Bangladesh’s central bank. Even when not stealing money or crashing computer systems, North Korea is lurking on networks and learning weaknesses in preparation for another attack, according to The Diplomat.
Next: It gets by with a little help from its…

4. Friends

It is believed that Iran shares nuclear information. | silverjohn/iStock/Getty Images

The off-the-books coal and mineral trade with China is just one way North Korea makes money. Sympathetic nationals and other pariah states are helping it get the cash and resources it needs. David Thompson, writing for the non-profit C4ADS, spotlights the case of Chinese citizen Fan Mintian, caught attempting to smuggle weapons from Cuba to North Korea, and that is just one case of foreign citizens helping. It is believed Iran, another enemy of the United States, and North Korea share nuclear information and resources.
Next: The country is a major player in this illegal activity.

5. Heroin

They’re the third largest heroin producer. | John Moore/Getty Images

That North Korea has been refining and distributing heroin around the world is an open secret. The Australian navy seized a North Korean ship transporting more than 100 kilograms of the drug in 2003. In fact, U.S. officials say the country is the world’s third-leading heroin producer behind Afghanistan and Burma, and the CIA calls out North Korean diplomats for engaging in heroin trafficking on a regular basis.  
Next: Another addictive agent helps line the pockets.

6. Methamphetamine

North Korea makes its money off of addicts. | Hannelore Foerster/Getty Images

As we’ve just seen, North Korea uses the heroin trade to make some off-the-books money. It seems one drug isn’t enough, as the country sends methamphetamine around the globe. The U.S. Department of Justice convicted three international conspirators of attempting to import 100 kilograms of North Korea-produced meth in 2015. That was three years after the same trio sold 30 kilos of the substance. The narcotics North Korea produces are in addition to fake pharmaceuticals, like Viagra, it makes.
Next: Putting the work in Workers’ Party of Korea.

7. Slave labor

They have been profiting off of enslaved labor and sex slavery. | rodjulian/iStock/Getty Images

The Workers’ Party of Korea is the political party running North Korea, and slave labor within the country has long been utilized. Apparently, it is also an export. Citizens up to the task work jobs overseas, with handlers watching their every move. Wages are mostly or entirely skimmed and the workers receive nothing, or close to it. A CNN report claims this scam brings in more than $1 billion annually.
Next: An ICBM for an ICBM.

8. Weapons

North Korea attempted to smuggle chemical weapons to Syria. | Nigel Treblin/Getty Images

Because of sanctions, North Korea should not be importing or exporting weapons, but that hurdle has been easy to overcome. Through years of unchecked trading, it stockpiled cash and other resources, which it uses to manufacture its own weapons. When there’s a surplus, it sells those weapons out to the highest bidder. In one incident, North Korea was caught trying to smuggle chemical weapons to Syria. If you’re not keeping track of world affairs, that’s one shady and generally-despised government trying to help out another one.

Culled fromWallstreetcheatsheet