A look at what the most important things are for your finances...
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A look at what the most important things are for your finances...
Do you know how much your 401(k) is costing you? Chances are the answer is no. Because a 401(k) does not send out a monthly or quarterly bill, it's easy to forget about the fact that these retirement accounts can cost plenty.
There use to be a time, if you're old enough to remember, when the total cost of a flight was in the ticket price. Now, it seems that the airline and airport companies are trying to increase profits every way possible, which means bad news for consumers.
Every month there’s a group of seven of us that tell some stories about the time in our lives related to that month’s topic. This month we’re talking about the poorest time in our lives. I had to really think about this a little because I’ve never been so bad off that I didn’t have options.
Since when do we rely on government to intervene in every case of a failing business? If anyone wonders why we have such a mess on our hands, look no further than our boneheaded government that has obviously forgotten its way. Think of this week's action within the financial markets as a result, not the cause of our problems.
Investors will cheer this move because it stabilizes markets in the short term. Overall, I do understand (but not a fan of) the need for this action by the Fed because the failure of AIG would have cost much more to the economy in terms of tighter credit markets, higher borrowing costs and further exacerbation of the housing crisis. However as a taxpayer it does mean that you and I will have to potentially bear the costs of this bailout down the line through higher taxes. I also suspect that this will not be the last government bailout and a number of more companies are going to be at risk as the financial contignation and crisis of confidence spreads. For a free market, capitalistic society, we sure are nationalizing a lot of institutions - remind you of other countries we once looked down for doing exactly the same thing?
While a number of groups have been affected by the ongoing financial crisis, it is employees of the collapsed institutions that have been hardest hit because not only do they rely on the company for their paycheck and livelihood, they also tend to be long term stock holders (via employee share plans) with significant ownership stakes. To compound matters most were not fully prepared for the relatively abrupt weekend company closures and/or management changes which meant that they had little time to find other jobs - not that many are currently available. With over 50,000 employees expected to be let go from Lehman and Merrill before month end....
A commitment is much stronger than a goal or a resolution, so here's a list of 10 "Commitments" that will help you achieve financial success.




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