Despite a lot of fuss being made about the bailouts globally (I
certainly have made my thoughts known this week), the averages
tallied another positive week.
Earnings movers to the upside today included Cliffs Natural
), Arch Coal (
), and Metlife (
). It's interesting that
Metlife reported big gains from derivatives
. Just a few days back, the company was denied its request to raise
its dividend as part of its ongoing review from the Federal
Reserve's oversight committee. The company did say it might sell
its banking business to avoid regulatory issues that might arise
from being tagged as "too big to fail."
As for disappointing earnings reactions, investors were busy
selling shares of Expedia (
), Cablevision (
), and Whirlpool (
). Whirlpool executives also announced the company would be cutting
5,000 jobs as they see demand at recessionary levels in the U.S. It
was a fairly quiet day as stocks that ran up the last couple of
weeks moved sideways for much of the day.
Baby Boomers Staying Put
A just-released poll from Associated Press and
LifeGoesStrong.com reported that fifty-two percent of boomers say
they are unlikely to move someplace new in retirement, unchanged
from March. And 4 in 10 say they are very likely to stay in their
current home throughout their retirement.
This sort of data reminds us that retirees need to find assets
that can produce income in their golden years. Many baby boomers
will be reluctant to sell their homes because values have fallen,
whereas they could have gotten much more for their homes years ago
(this phenomenon is similar to an investor refusing to sell a stock
that has fallen off its highs, because he wants those older prices
Realistically, no one is ever able to sell right at the exact
top of the market. Many who sold their homes in 2006, only to see
prices accelerate even higher the next year, probably felt some
seller's remorse. It happens. Now if someone wants to stay in their
home because of other reasons, there's nothing wrong with that. The
key is to know how one can carry the ongoing expenses of owning a
home during retirement. Running out of money just to stay in your
house is not a smart plan.
There is nothing wrong to sitting down with a certified
financial planner who can evaluate your particular situation. For
some, it may not be feasible to carry a heavy real estate burden.
For example, my parents' property taxes have not stopped rising,
and even though their home is paid off, they feel the psychological
burden of watching their annual costs rise (much more than the
government's reported inflation gauges would have you believe).
Every situation is different, of course. Before you draw any
lines in the sand about your living arrangements, be sure you
crunch the numbers first. Be as certain about your best option as
you can, so you are prepared financially for any potentially
Take Charge of Your Finances - You Can Do It!
It's nearly impossible to achieve financial peace of mind
without a sense of discipline. Many individuals get caught up in
the material frenzy of "Keeping up with the Joneses," only to let
the years fly by before realizing they're in a deep hole of debt,
with little in the way of savings.
Making regular contributions to your retirement account (and
maxing out those contributions) is key to keeping your tax bite
from being severe. All too many people count on their home as their
main nest egg. The real estate market has been very tough those who
assumed a certain value in their property.
Investing is an ongoing process. You can't just put money into
investments and forget about them. Always pay attention to where
your money is going and how your investments are performing.
There are plenty of resources at one's fingertips these days, so
looking after your life savings is not as hard as Wall Street would
have you believe. Is it beneficial to have an investment advisor
help you sort things out? Certainly! But never forget this - No one
will care more about your money than YOU!
Dividend Stock Recommendation Change
Be sure to check out the name we removed from our recommended
list this morning. You can find
the full run-down of our downgrade here
A Look to Next Week and a Weekend Preview
Looking ahead to next week, quarterly earnings will be rocking
once again, with several big names slated to post their latest
reports. We will see results from the likes of Pfizer (
), MasterCard (
), Kraft Foods (
), Clorox (
), and plenty of others.
Be sure to catch up with our latest watchlist updates this
, including reports on earnings/story stocks, analyst
upgrades/downgrades, dividend ETFs, and much more. And as always,
you can view our current recommendations on our industry-leading
Best Dividend Stocks List
Thanks for reading, and I'll see this weekend! P.S. Please pass
this e-mail on to someone you think can use some financial
motivation as well as being kept in the financial news loop that
could affect them.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here