Using a new measure of poverty which adjusts for area costs of living, in-kind benefits, health care costs and other factors, the Census Bureau released a new report today (reported here in USA Today) showing that the number of people in poverty is about 49.1 million, 6% higher than the 46.2 million originally estimated in September. [...]
Another sobering article about retirement, or lack thereof: Households that expected to find retirement just around the corner will have to work longer. The main reason? Debt, debt, and more debt: mortgages, home equity loans, kids’ college expenses and credit card debts are saddling 60- to 64-year-old households who expected their retirement-age years to be [...]
In my recent study, Ten Ways to Wreck Your Retirement, I pointed out that relying too much on home equity for retirement income can spell trouble. A Wall Street Journal article has reiterated the potential pitfalls of relying on a mortgage to make you rich.
Decades ago, it was assumed that households approaching retirement did so with little or no debt. By the time the AARP membership cards began arriving in the mail, the mortgage was paid off (or very close to it), the kids had grown up, attended college and moved out, and there were no more child rearing expenses.