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Twitter's stock jumps after analyst upgrade
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Oil prices stumble as the week begins
Europe stocks slip | Dollar falls
Nassim Taleb’s ‘Black Swan’ fund made $1 bln
Bloomberg News to lay off 80 by Labor Day
5 silly new words in the Oxford dictionary

Apple will double the cost of next Apple TV
Apple TV is reportedly about to get twice as expensive
Apple, Amazon, Google stock on shopping lists

Why BlackBerry is a more attractive buyout target than Twitter
BlackBerry is a better buyout target than Twitter

Investing in energy stocks could land you in a huge ‘value trap’
Energy stocks could be a huge ‘value trap’
Italy’s Eni discovers ‘supergiant’ gas field

Scott Walker's backers seek a reboot of his campaign
Scott Walker’s backers seek reboot of campaign
Scott Walker wants a wall — with Canada
Biden polls better than Clinton against top GOP

China ‘punishes’ nearly 200 over rumors

China undermines the U.S. Defense Department

Sunday is Warren Buffett's 85th birthday
Happy 85th birthday to the $67 billion man


Now is the time to fix your investment portfolio
Now is the time to fix your investment portfolio
Both worry, be happy stocks aren’t a sure bet

Facebook users flood Mark Zuckerberg with thank you’s
Facebook users flood Zuckerberg with thanks


‘War Room’ is a ‘resounding success’ at box office

10 money stories you might have missed but shouldn’t have
10 money stories you shouldn’t have missed

By this measure, stocks have weathered the worst
By this measure, stocks have weathered the worst

Blue-chips with fat dividends offer value


Have kiddie birthday parties gone too far?

Parents: You’re putting your kids in danger
Parents: You’re putting your kids in danger

Cheeseburgers and happiness always on the menu for Warren Buffett — and Jimmy Buffett, too
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Harry Styles makes more waves for SeaWorld

Most imposing stock ‘wall of worry’ in 5 years
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Markets »

26.26MDow Volume:
Avg Vol: 112.32M
Unchanged
218
Decliners
3621
Advancers
2453
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 16,537 -106 0.64%
Nasdaq
/quotes/zigman/12633936/realtime 4,804 -25 0.51%
S&P 500
/quotes/zigman/3870025/realtime 1,976 -13 0.64%
GlobalDow
/quotes/zigman/629063/realtime 2,354 -19 0.81%
Gold
/quotes/zigman/662444/delayed 1,129 -5 0.43%
Oil
/quotes/zigman/2331095/delayed 44.39 -0.83 1.84%
FTSE 100
/quotes/zigman/3173262/delayed 6,248 +56 0.90%
DAX
/quotes/zigman/2380246/delayed 10,255 -43 0.42%
CAC 40
/quotes/zigman/3173214/delayed 4,648 -28 0.59%
FTSE MIB
/quotes/zigman/1482176/delayed 21,903 -91 0.41%
IBEX 35
/quotes/zigman/2759620/delayed 10,250 -103 0.99%
Stoxx 600
/quotes/zigman/2380150/delayed 363 -1 0.15%
Asia Dow
/quotes/zigman/6959860/realtime 2,785 -13 0.47%
Nikkei 225
/quotes/zigman/5986735/delayed 18,890 -246 1.28%
Hang Seng
/quotes/zigman/2622475/delayed 21,671 +58 0.27%
Shanghai
/quotes/zigman/1859015/delayed 3,206 -26 0.82%
Sensex
/quotes/zigman/1652085/delayed 26,283 -109 0.41%
Singapore
/quotes/zigman/1709939/delayed 2,921 -35 1.17%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 +0.00 0.18%
Yen
/quotes/zigman/16008150/realtime/sampled 121.18 -0.52 0.42%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 0.00 0.04%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 -0.01 1.03%
DXY Index
/quotes/zigman/1652083/delayed 96.24 +0.25 0.26%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.62 +0.12 0.13%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.16 -0.02 0.89%
German 10y
/quotes/zigman/15866409/realtime 0.73 -0.01 1.33%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 +0.01 0.45%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 0.00 0.19%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.85 -0.02 0.96%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 0.00 0.55%
Crude Oil
/quotes/zigman/2331095/delayed 44 -1 1.84%
Gold
/quotes/zigman/662444/delayed 1,129 -5 0.43%
Corn
/quotes/zigman/7599553/delayed 372 -3 0.80%
DJIA F
/quotes/zigman/38649152/delayed 16,516 -143 0.86%
S&P F
/quotes/zigman/30356461/delayed 1,974 -16 0.82%
Silver
/quotes/zigman/3134148/delayed 14 0 0.71%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 90.18 -0.83 -0.91%
AAPL /quotes/zigman/68270/composite 112.78 -0.51 -0.45%
GOOG /quotes/zigman/30194416/composite 634.80 4.42 0.70%
BAC /quotes/zigman/190927/composite 16.26 -0.10 -0.61%
C /quotes/zigman/5065548/composite 53.13 -0.15 -0.28%
F /quotes/zigman/264304/composite 13.75 0.0050 0.04%
T /quotes/zigman/398198/composite 33.09 -0.20 -0.60%
BP /quotes/zigman/247026/composite 32.91 -0.36 -1.07%
GE /quotes/zigman/227468/composite 24.73 -0.43 -1.71%
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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

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Encore
A blog about living in and planning for retirement

Why Retirees Need ‘Dementia Insurance’

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

A recent blog post reported that David Laibson, a talented behavioral economist at Harvard University, cited annuities as a way to help minimize poor financial decisions associated with dementia, a type of “dementia insurance.” This notion is right on. The retirement income landscape has changed. Increasingly, individuals’ well-being in retirement will depend on how much they have in their 401(k) plans. They will have to figure out how best to protect their assets and allocate that money over 20 to 30 years in retirement. This challenge is new; with traditional defined benefit plans, the employer provides an income for life and the recipient has no responsibility.

Most 401(k) plan analysts agree that these plans have not worked as well as one might hope. On the accumulation side, participants make mistakes at every step along the way. They fail to join the plan, to contribute as much as they should, to allocate their investments sensibly, to roll over money when they move from one job to another, and to rebalance their investments as they age. Legislation, such as the Pension Protection Act of 2006, was aimed at making these plans easier and more automatic. But serious problems remain. And the accumulation period of a participant’s life is one where cognitive impairment, for the most part, is not a problem.

Now 401(k) plan participants are entering retirement with a pile of money, which they need to use effectively for a secure retirement. But retirement is a period where cognitive decline is almost inevitable and dementia a possibility. The data show that over half of people in their 80s have either dementia or cognitive impairment without dementia. These individuals will not be able to manage their own money.

Moreover, recent data show that financial fraud against older people is on the rise. With the ability through the internet to contact millions of people with a single stroke, scammers often target gullible older people with the lure of solving their financial problems with too-good-to-be-true investments. This phenomenon will only get worse as the numbers of older individuals with cash balances and declining cognition increase.

One answer to the challenge of needing to manage money, on the one hand, and declining cognition, on the other, is to purchase an annuity early in retirement. An annuity transforms 401(k) balances into a stream of lifetime income, which requires further decisions. As discussed last week, the cheapest way to purchase the best annuity is to delay claiming Social Security benefits. For those with modest 401(k) balances, the ideal strategy may be to work as long as possible, then use 401(k) assets to pay for living expenses to delay claiming an extra two or three years. The thing to remember is that the monthly Social Security benefit at age 70 is 75 percent higher than that at age 62. And the Social Security annuity is indexed for inflation, a product hard to find in the private market.

The bad news, then, is the potential for calamity as people will increasingly be required to manage their own money in retirement and face the inevitable specter of declining cognition. This combination opens the door for serious mishandling of funds or falling victim to fraud. The good news is that this problem has a solution: put as much money as possible into an inflation-indexed annuity by delaying Social Security claiming as long as possible.

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 7)

View all Comments »
    • Hi

      I think that your blog is very nice! The content is really nice
      Keep up with The excellent posts.

      regards,

    • … don’t care what you say, annuities are only for the fearful (but who never fear for an insurer’s on-going ability to service the annuity.)

      You’re better off entrusting your money management to a trusted person who is certain to outlive you.

    • That comment about “breaking even” is irresponsible. The basis for the decision is avoidance of short-of-money risk, which is greater if one lives longer.

    • Social security benefits will increase, if not taken. up to age 70, not 75.

    • It seems to me this article is very, very narrow in it’s thinking. Delaying Social Security is a great idea, UNLESS you need the income before you turn 70 – 75. In our current economy it’s almost impossible for someone over age 62 to get another job to support themselves or a family, if they have lost the one they already have.

      It seems a much better recommendation to have a living will that turns one’s money management over to a trusted family member, or an executor, at a certain age when cognitive impairment is likely to happen. That way, one can collect income which best suits their own needs. It’s actually thoughtless to think that a majority of over-62 people can delay SS benefits.

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

New York Markets Close in:

need to know
Twitter's stock jumps after analyst upgrade
Intel upgraded on improving outlook for PCs
BNY Mellon races to fix pricing glitches
Oil prices stumble as the week begins
Europe stocks slip | Dollar falls
Nassim Taleb’s ‘Black Swan’ fund made $1 bln
Bloomberg News to lay off 80 by Labor Day
5 silly new words in the Oxford dictionary

Apple will double the cost of next Apple TV
Apple TV is reportedly about to get twice as expensive
Apple, Amazon, Google stock on shopping lists

Why BlackBerry is a more attractive buyout target than Twitter
BlackBerry is a better buyout target than Twitter

Investing in energy stocks could land you in a huge ‘value trap’
Energy stocks could be a huge ‘value trap’
Italy’s Eni discovers ‘supergiant’ gas field

Scott Walker's backers seek a reboot of his campaign
Scott Walker’s backers seek reboot of campaign
Scott Walker wants a wall — with Canada
Biden polls better than Clinton against top GOP

China ‘punishes’ nearly 200 over rumors

China undermines the U.S. Defense Department

Sunday is Warren Buffett's 85th birthday
Happy 85th birthday to the $67 billion man


Now is the time to fix your investment portfolio
Now is the time to fix your investment portfolio
Both worry, be happy stocks aren’t a sure bet

Facebook users flood Mark Zuckerberg with thank you’s
Facebook users flood Zuckerberg with thanks


‘War Room’ is a ‘resounding success’ at box office

10 money stories you might have missed but shouldn’t have
10 money stories you shouldn’t have missed

By this measure, stocks have weathered the worst
By this measure, stocks have weathered the worst

Blue-chips with fat dividends offer value


Have kiddie birthday parties gone too far?

Parents: You’re putting your kids in danger
Parents: You’re putting your kids in danger

Cheeseburgers and happiness always on the menu for Warren Buffett — and Jimmy Buffett, too
Farrell: Recipes for happiness, from Buffett and others

Harry Styles makes more waves for SeaWorld
Harry Styles makes more waves for SeaWorld

Most imposing stock ‘wall of worry’ in 5 years
Worried? With good advice, you won't be

/conga/frontpage.html 353684

Markets »

26.36MDow Volume:
Avg Vol: 112.32M
Unchanged
218
Decliners
3632
Advancers
2454
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 16,528 -115 0.69%
Nasdaq
/quotes/zigman/12633936/realtime 4,801 -28 0.57%
S&P 500
/quotes/zigman/3870025/realtime 1,975 -14 0.70%
GlobalDow
/quotes/zigman/629063/realtime 2,354 -19 0.82%
Gold
/quotes/zigman/662444/delayed 1,129 -5 0.42%
Oil
/quotes/zigman/2331095/delayed 44.38 -0.84 1.86%
FTSE 100
/quotes/zigman/3173262/delayed 6,248 +56 0.90%
DAX
/quotes/zigman/2380246/delayed 10,254 -44 0.43%
CAC 40
/quotes/zigman/3173214/delayed 4,647 -28 0.59%
FTSE MIB
/quotes/zigman/1482176/delayed 21,901 -93 0.42%
IBEX 35
/quotes/zigman/2759620/delayed 10,249 -104 1.00%
Stoxx 600
/quotes/zigman/2380150/delayed 363 -1 0.16%
Asia Dow
/quotes/zigman/6959860/realtime 2,785 -13 0.46%
Nikkei 225
/quotes/zigman/5986735/delayed 18,890 -246 1.28%
Hang Seng
/quotes/zigman/2622475/delayed 21,671 +58 0.27%
Shanghai
/quotes/zigman/1859015/delayed 3,206 -26 0.82%
Sensex
/quotes/zigman/1652085/delayed 26,283 -109 0.41%
Singapore
/quotes/zigman/1709939/delayed 2,921 -35 1.17%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 +0.00 0.18%
Yen
/quotes/zigman/16008150/realtime/sampled 121.18 -0.52 0.42%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 0.00 0.05%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 -0.01 1.06%
DXY Index
/quotes/zigman/1652083/delayed 96.22 +0.23 0.24%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.61 +0.11 0.12%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.16 -0.02 0.89%
German 10y
/quotes/zigman/15866409/realtime 0.73 -0.01 1.33%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 +0.01 0.45%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 0.00 0.19%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.85 -0.02 0.96%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 0.00 0.55%
Crude Oil
/quotes/zigman/2331095/delayed 44 -1 1.86%
Gold
/quotes/zigman/662444/delayed 1,129 -5 0.42%
Corn
/quotes/zigman/7599553/delayed 372 -3 0.80%
DJIA F
/quotes/zigman/38649152/delayed 16,516 -143 0.86%
S&P F
/quotes/zigman/30356461/delayed 1,974 -16 0.82%
Silver
/quotes/zigman/3134148/delayed 14 0 0.68%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 90.23 -0.78 -0.86%
AAPL /quotes/zigman/68270/composite 112.89 -0.40 -0.35%
GOOG /quotes/zigman/30194416/composite 635.37 4.99 0.79%
BAC /quotes/zigman/190927/composite 16.27 -0.09 -0.55%
C /quotes/zigman/5065548/composite 53.15 -0.13 -0.24%
F /quotes/zigman/264304/composite 13.75 0.01 0.07%
T /quotes/zigman/398198/composite 33.11 -0.18 -0.54%
BP /quotes/zigman/247026/composite 32.91 -0.35 -1.05%
GE /quotes/zigman/227468/composite 24.76 -0.40 -1.59%
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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
Business 12.85% 12.85% 12.85%
Balance Transfer 14.12% 14.12% 14.00%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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  • /quotes/zigman/55989606/composite ACI+20.71%
  • /quotes/zigman/92224/composite ALNY-3.31%
  • /quotes/zigman/83890/composite MDCO+17.27%
  • /quotes/zigman/303974/composite NBL-5.86%
X
Powered by StockTwits
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