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1105
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5358
Price Chg %Chg 1 Day
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/quotes/zigman/627449/realtime 16,655 +369 2.27%
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/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,375 +14 0.59%
Gold
/quotes/zigman/662444/delayed 1,130 +8 0.67%
Oil
/quotes/zigman/2331095/delayed 42.96 +0.40 0.94%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,807 +54 1.97%
Nikkei 225
/quotes/zigman/5986735/delayed 19,081 +507 2.73%
Hang Seng
/quotes/zigman/2622475/delayed 21,949 +110 0.50%
Shanghai
/quotes/zigman/1859015/delayed 3,143 +59 1.93%
Sensex
/quotes/zigman/1652085/delayed 26,545 +314 1.20%
Singapore
/quotes/zigman/1709939/delayed 2,991 +45 1.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.17%
Yen
/quotes/zigman/16008150/realtime/sampled 120.94 -0.09 0.08%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.23%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 0.00 0.04%
DXY Index
/quotes/zigman/1652083/delayed 95.63 -0.14 0.14%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.18 -0.08 0.09%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.18 -0.01 0.36%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
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U.K. 10yr
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Japan 10yr
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/quotes/zigman/2331095/delayed 43 +0 0.94%
Gold
/quotes/zigman/662444/delayed 1,130 +8 0.67%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.67%
DJIA F
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/quotes/zigman/30356461/delayed 1,979 -10 0.51%
Silver
/quotes/zigman/3134148/delayed 14 +0 0.16%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
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5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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Encore
A blog about living in and planning for retirement

Saving Social Security: Raising Taxes vs. Cutting Benefits

iStockPhoto

Alicia Munnell, the director of the Center for Retirement Research at Boston College, is a weekly contributor to “Encore.”

Who knows what’s happening in Washington in the battle over raising the debt limit.  One day they’re searching for $4 trillion in savings; the next day it’s $2 trillion.  Sometimes Social Security is on the table; sometimes it’s not.  Fixing Social Security could modestly help reduce the long-run deficit, but it is too important for millions of Americans simply to apply a meat ax.  It should not be part of the discussion if revenues are off the table.

Social Security’s projected benefits exceed scheduled taxes.  Opponents of including Social Security in the deficit reduction effort argue that, despite the mismatch of benefits and taxes, the program does not contribute to future deficits because, by law, it cannot spend money it does not have.  Technically, they’re right.  But, in fact, long-term deficit projections by the Congressional Budget Office, Office of Management and Budget, and Government Accountability Office all include the shortfall in their projections.  And these projections matter because they are widely used by policymakers, investors, and the bond markets to gauge the nation’s fiscal health.  Therefore, eliminating Social Security’s shortfall will improve the long-term budget outlook.

And it should be done sooner rather than later, because the longer we wait the bigger will be the required changes.  Moreover fixing the program would make people feel more confident about their retirement future, and the impact of the required changes would not be felt until far in the future when we are well past the current lingering recession.

The key question is how much of Social Security’s financing gap should be closed by cutting benefits vs. raising taxes.  My view is that retirements are at risk.  The need for retirement income is increasing as people live longer, health care costs are soaring, and two-thirds will need some long-term care.  At the same time, the retirement system is contracting.  Social Security will replace less of pre-retirement income as the Full Retirement Age goes to 67, and employer-sponsored plans – for those lucky enough to have them – are increasingly 401(k)s with modest balances.

In this challenging environment, Social Security is the backbone of support for older Americans.  As shown in the Figure, Social Security accounts for 87% of non-earned income for the poorest third of households 65 and over; 70% for the middle third; and 37% for the highest third.  Given how much people rely on the program, we should be careful about large cuts in benefits.

Compromise is inevitable, however.  And the best place to look for cost saving is increasing the retirement age.  It’s hard to argue that if 66 is the right age today, it still will be the right age in 2050.  Linking the Full Retirement Age (after it reaches 67) to improvements in longevity would make sure it goes up only if life expectancy increases and could be done very gradually.

But additional revenues are key to any Social Security deal.  One popular proposal involves increasing the contribution and benefit base gradually to a level covering 90% of total national earnings – about $180,000 at current income levels.  Another is a small increase in the payroll tax rate, by a fraction of one percent for the employer and employee.  Others have suggested gradually eliminating the tax exclusion for group health insurance so that both employee and employer premiums are covered by the payroll (and income) tax.

In short, people rely too heavily on Social Security to make big benefit cuts.  But we as a nation must pay for the benefits we want.  So additional revenues have to be part of any plan to restore balance to Social Security.  If that’s not possible, take it off the table.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 50)

View all Comments »
    • Why has the government not been called on the carpet about where our money is going, i know the fox is gaurding the hen house .

    • You failed to even mention the fact that our government has stolen and squandered these funds over many years; they should already be funded but since they are not, and since we have been on an unprecedented spending binge, we HAVE NO CHOICE to make serious cuts to Social Security benefits just like everywhere else.

      If the country goes bankrupt they’ll get little or nothing so taking cuts is the realistic option for these seniors. I’m 63 years old and I’ve know for many years that I could not count on Social Security in my later years. Get real.

    • Our government has already spent the excess that was collected in SS taxes in the past. So to now reduce benefits amounts to taxing again those who have already paid into the system. This is just wrong.

    • I probably won’t see any SS if they continue to meddle with it due to my projected retirement income.
      Yet, it seems only fair that I get out at least what I put into it. Raising taxes isn’t a good option– we have to stop raising taxes and get folks to realize they have to plan ahead and not rely only on SS.

      Relying only on SS isn’t good– folks need to plan their work…and retirement…

    • I am in full agreement with many of the posts that I’ve read here. Congress has mishandled our money and the middle class has been forced to PAY and PAY and PAY while big business and politicians get fatter. We pay into our Social Security benefits for our own use. The government has no right to extort our Social Security, to extort our pension plans to pay for their mishandling of our this economy. We should be marching on the White House and demanding that our elected officials take responsible action instead of protecting their own re-elections. I am disgusted with the Congress and with the President for even suggesting that the American people want this type of debt payment. Let’s start by bringing our troops home and keeping our money home instead of funding things like Pakistan’s education programs. Common America…wake up. They are robbing us blind!!

About Encore

  • Encore examines the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities and priorities of today’s retirees. The blog also explores news that affects retirement, from the Wall Street Journal Digital Network and around the web. Lead bloggers are reporter Catey Hill and senior editor Jeremy Olshan. Other contributors include The Wall Street Journal’s retirement columnists Glenn Ruffenach and Anne Tergesen; the Director for the Center for Retirement Research at Boston College, Alicia Munnell; and the Director of Research for Pinnacle Advisory Group, Michael Kitces, CFP.

MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

Tokyo Markets Close in:

need to know
Activision, United rally on S&P 500 inclusion
Amgen gets FDA OK for cholesterol treatment
Icahn discloses stake in Freeport McMoRan
Autodesk beats earnings expectations
GameStop tops expectations; shares rise
Bank of New York Mellon tech woes hit prices
Wall Street’s missing a closed-end bargain

The happiest — and most miserable — countries on earth
This is the happiest country on earth


What should China do to fix its economy?
What should China do to fix its economy?
Analysts dismiss fears of a China hard landing
‘Loch Ness monster’ and a mysterious rally
China fears trigger emerging market outflows

Apple closes in on Fitbit as world's biggest wearables company
Apple closes in on Fitbit in wearables

Apple to host Sept. 9 product event

How momentum investing could go out of style
Momentum investing could be going out of style

These are the best jobs for millennials
These are the best jobs for millennials


Wal-Mart explains decision to stop selling some guns

One billion people logged onto Facebook Monday in new company milestone
1 billion people used Facebook in one day


Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

10 fall beers with absolutely no pumpkin in them
10 fall beers with absolutely no pumpkin in them

Sorry, Uber, but this is the end of the IPO party

Star-studded content up Netflix’s sleeve
'Mr. Robot' season finale postponed

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

6 ‘services’ that help hackers get rich

4 things you didn’t know could be hacked
How vulnerable are U.S. markets to hackers?


How to throw a  birthday party for under $100
Only half of Americans with kids have wills

Millennials are clueless about cellphone etiquette
Millennials realize growing up is hard to do

/conga/frontpage.html 353513

Markets »

171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,375 +14 0.59%
Gold
/quotes/zigman/662444/delayed 1,130 +8 0.67%
Oil
/quotes/zigman/2331095/delayed 42.96 +0.40 0.94%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,806 +54 1.96%
Nikkei 225
/quotes/zigman/5986735/delayed 19,081 +506 2.72%
Hang Seng
/quotes/zigman/2622475/delayed 21,949 +110 0.50%
Shanghai
/quotes/zigman/1859015/delayed 3,143 +59 1.93%
Sensex
/quotes/zigman/1652085/delayed 26,545 +314 1.20%
Singapore
/quotes/zigman/1709939/delayed 2,991 +45 1.54%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.16%
Yen
/quotes/zigman/16008150/realtime/sampled 120.94 -0.09 0.08%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.22%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 0.00 0.06%
DXY Index
/quotes/zigman/1652083/delayed 95.63 -0.13 0.14%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.18 -0.08 0.09%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.18 -0.01 0.36%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 0.00 0.33%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 0.94%
Gold
/quotes/zigman/662444/delayed 1,130 +8 0.67%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.67%
DJIA F
/quotes/zigman/38649152/delayed 16,574 -76 0.46%
S&P F
/quotes/zigman/30356461/delayed 1,979 -10 0.51%
Silver
/quotes/zigman/3134148/delayed 14 +0 0.16%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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  • /quotes/zigman/19622165/composite BBRY+5.89%
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