Category: Personal Finance

Can You Pass This Medicare Quiz?

Social Security may seem to get all of the glory given that it puts money in seniors’ pockets on a monthly basis during retirement, but the importance of Medicare is growing. According to the Urban Institute, an average income male with $47,800 in earnings in 2015 dollars will receive more in estimated lifetime benefits from Medicare than Social Security if he turns 65 in the year 2055.

Social Security in 2017: 12 Stats Everyone Should Know

You might not appreciate it yet, but Social Security is vital to most Americans. And it looks like it may be undergoing some big changes, as Republican lawmakers have proposed cuttingbenefits and increasing the retirement age to 69. Given all that, it’s more valuable than ever for you to know more about Social Security.

Fairfax Seeking $1 Billion in IPO for Africa Investments

Fairfax Financial Holdings Ltd., the Canadian insurer that made its largest acquisition this week, is selling shares in an initial public offering for a fund that will make investments in Africa. The company is seeking to raise as much as $1 billion from the sale, people familiar with the matter said.

How Much Will Social Security Benefits Go Up in 2017?

Tens of millions of Americans rely on Social Security for a large chunk of their income in retirement, and many of them look forward to the cost-of-living increases in their monthly benefits they typically receive at the beginning of each year. 2016 was an exception to that rule, because Social Security didn’t make any cost-of-living increase at all.

CEO’s Winning Gamble May Keep Scrooge From Deutsche Bank Bonuses

Deutsche Bank AG employees may owe their cash bonuses for 2016, however modest, to a last-minute bargain by Chief Executive Officer John Cryan. The beleaguered German bank, long embroiled in negotiations with the U.S. Justice Department, was inching closer in recent weeks to a resolution over its sale of defective residential mortgage-backed securities that fueled the financial crisis.

5 Ways Your Retirement Can Easily Be Ruined

Nearly all Americans share one goal: they want to be able to hang up their work coat after many years in the labor force and know that they’re financially set for retirement. Unfortunately, this is a goal that’s being reached by a depressingly low number of Americans.

The No. 1 Reason Why Social Security Recipients Are Losing Their Purchasing Power

More than 60 million Americans are currently receiving Social Security benefits, 41.2 million of whom were retired workers as of the November snapshot from the Social Security Administration . Of these retired workers, both Gallup’s survey findings and data from the SSA show that Social Security is relied upon by roughly 60% of retirees to account for at least half of their monthly income.

How Much Will Medicare Cost You in 2017?

Medicare covers more than 57 million Americans, providing the healthcare coverage they need. Every year, though, the cost of Medicare typically goes up, and the program passes through those increases to its participants in the form of higher premiums, deductibles, and other expenses.

Boost Your Retirement Income With These 10 Tips

With fewer and fewer of us able to enjoy traditional pension income, it’s more important than ever that we plan for our future financial security and set ourselves up to receive sufficient income when we’re no longer working. Here are 10 ways you can boost your retirement income.

Deutsche Bank, Credit Suisse Settle U.S. Subprime Probes

Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined $12.5 billion to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that undermined confidence in the banks and raised questions about their turnarounds. Deutsche Bank will pay $7.2 billion and take a $1.2 billion pretax charge this quarter, while Credit Suisse agreed to a $5.3 billion deal and will recognize a $2 billion hit to earnings, the banks said in separate statements early Friday.

Stocks Struggle for Momentum, But Weekly Gains in Sight

U.S. stocks were little-changed in their final trading day before the holidays on Friday, and while indexes remained on track for a positive week, the “Santa rally” that has taken indexes to repeated records appeared to stall with few catalysts to spur buying. While the Dow once again appeared unlikely to pierce through the closely watched milestone of 20,000, the blue-chip index is set to log its seventh weekly gain in a row.

A Sudden Burst of Activity on Mortgage Litigation

In the span of just 12 hours, three U.S. enforcement matters left over from the financial crisis made significant progress: Deutsche Bank AG and Credit Suisse Group AG separately announced that they would pay a combined $12.5 billion to resolve U.S. investigations into their sales of toxic mortgage debt, whereas Barclays Plc chose to roll the dice and let the Justice Department file a fraud lawsuit over its debt sales. Before these latest two deals, the U.S. investigations had already yielded more than $46 billion from six U.S. financial institutions.

Barclays to Face Off Against U.S. Over – Craptacular’ Loans

The U.S. Justice Department sued Barclays Plc for fraud over its sale of mortgage bonds after the bank balked at paying the amount the government sought in settlement negotiations. The lawsuit announced on Thursday is rare for big banks, which typically negotiate a settlement with the government rather than risk drawn-out litigation and a possible trial.

Deutsche Bank to Settle U.S. Mortgage Probe for $7.2 Billion

Deutsche Bank AG said it reached a $7.2 billion agreement to resolve a years-long U.S. investigation into its dealings in mortgage-backed securities, removing a legal hurdle that fueled investor angst. Deutsche Bank will pay a $3.1 billion civil penalty and provide $4.1 billion in relief to consumers under a settlement in principle with U.S. authorities, according to a statement early Friday.

UPDATE 1-Mobile phone company to pay $30 million in U.S. fraud case

A KDDI Corp mobile phone unit has agreed to pay $30 million to resolve U.S. government claims that it defrauded a low-income subsidy program by seeking reimbursement for ineligible consumers, prosecutors said on Thursday. Total Call Mobile LLC agreed to no longer participate in the Lifeline subsidy program or reimburse tens of thousands of ineligible consumers who had enrolled, Manhattan U.S. Attorney Preet Bharara said in a statement.

Roth IRAs Can Help Ward Off the – Ghost of Retirement Future’

The spooky ghost scenes from “A Christmas Carol” are perfect metaphors for the past, present and future worries that haunt our retirement savings dreams. For some, Roth IRAs – which tend to see an annual spike in online search interest beginning during the holiday season – can help keep that “Ghost of Retirement Future” at bay.

Reverse Mortgage Line of Credit Could Fund Long-Term Care

There’s a 70% chance that people over 65 will need some kind of long-term care, including services such as home care, assisted living and skilled nursing, according to government statistics . There are lots of ways to pay for long-term care services, including Medicare, Medicaid, traditional health insurance, long-term care insurance , life insurance and annuities.

Ahead of the Bell: US home sales

The National Association of Realtors reports on November sales of existing U.S. homes Wednesday at 10 a.m. Eastern. SALES PULLBACK: Economists surveyed by the data firm FactSet predict that sales of existing home retreated 1.8 percent last month to a seasonally adjusted annual rate of 5.5 million.

5 Big Mortgage Market Predictions For 2017

With the Federal Reserve raising interest rates last week, with more rate hikes to come in ’17, next year should be a whirlwind for the mortgage market. With chestnuts roasting by an open fire, Federal Reserve Chair Janet Yellen is nipping at the noses of mortgage industry professionals with one interest rate hike in the bank this year and two or three more likely on the way in 2017.

Lloyds to Buy BofA’s U.K. Credit Card Unit for $2.4 Billion

Lloyds Banking Group Plc agreed to buy Bank of America Corp.’s MBNA credit-card business in the U.K. for 1.9 billion pounds in cash, marking its first major deal since being rescued by British taxpayers eight years ago. The acquisition of MBNA, which has about 7 billion pounds of assets, will add 650 million pounds a year to Lloyd’s revenue, equivalent to a 4 percent increase, according to a statement Tuesday.

SoFi Pushes Back IPO Plans Amid Financial Tech Sector Struggles

The online lending company known as SoFi, which specializes in refinancing student loans, is pushing back plans for an initial public offering in order to focus on developing other business lines, said Chief Executive Officer Mike Cagney. Meanwhile, the company hasn’t yet closed a $500 million funding round, an effort that has SoFi courting international investors to purchase loans and potentially take an equity stake at the same time.

5 Lowest 7-Year ARM Mortgage Rates

Homebuyers can still snag the absolute lowest rates, especially if they don’t plan on staying in their first home for more seven years. U.S. mortgage rates have risen in the aftermath of the presidential election, as potential homeowners face higher monthly payments amid a stagnant economy with slow wage growth.

Citigroup’s Larsen Exits as Retail Banking, Mortgage Head

Citigroup Inc.’s global head of retail banking and mortgages, Jonathan Larsen, who has been known as an advocate of digital banking, resigned for personal reasons, the lender said. The New York-based bank is yet to choose a replacement for his “critical role,” it said in an internal memo dated Dec. 9. Citigroup spokesman James Griffiths confirmed the contents of the document.

Hedge Funds? Returns Don?t Impress Centrica Pension Fund

Centrica Plc’s pension pot is shunning hedge funds and boosting investment in real assets as it seeks to plug a 1.2 billion-pound funding hole. “My definition of hedge funds is where people seek to magic up returns out of nothing,” said Chetan Ghosh, chief investment officer of the company’s 7.3 billion-pound retirement funds.