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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
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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

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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 2,372 +11 0.47%
Gold
/quotes/zigman/662444/delayed 1,126 +4 0.34%
Oil
/quotes/zigman/2331095/delayed 42.59 +0.03 0.07%
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 2,802 +49 1.79%
Nikkei 225
/quotes/zigman/5986735/delayed 19,045 +471 2.53%
Hang Seng
/quotes/zigman/2622475/delayed 21,839 +758 3.60%
Shanghai
/quotes/zigman/1859015/delayed 3,084 +156 5.34%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,985 +40 1.36%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.03%
Yen
/quotes/zigman/16008150/realtime/sampled 121.21 +0.17 0.14%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.10%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.49%
DXY Index
/quotes/zigman/1652083/delayed 95.78 +0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.25 -0.02 0.02%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.00 0.05%
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 0.84%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 0.07%
Gold
/quotes/zigman/662444/delayed 1,126 +4 0.34%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.73%
DJIA F
/quotes/zigman/38649152/delayed 16,662 +12 0.07%
S&P F
/quotes/zigman/30356461/delayed 1,990 +0 0.02%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.64%

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%
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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

Anger Over Social Security’s Financial Woes

Being new to the blog business, I was never sure if anyone was on the receiving end of my missals. Any uncertainty has been eliminated by an avalanche of angry messages over the weekend in response to “Social Security: The Cheapest Annuity in Town.” The responses to the proposal for households to use existing funds for support and delay claiming Social Security was met with two responses. The first was that Social Security may not be there, so why not grab benefits as soon as possible. The second was that people could not be sure that they will live long enough to make up for foregoing benefits at a younger age. This post will address the first issue. Next week’s will address the second.

The anger over whether Social Security will be able to pay future benefits is perfectly justifiable. We have known that the program faces long-run financing issues since immediately after the 1983 amendments and that the shortfall was significant and unlikely to right itself since 1993. The Figure shows that the deficit has hovered around 2 percent of taxable payrolls for almost 20 years. Yet, we have done nothing. As a result, the magnitude of the required changes has gotten bigger and the potential of a sharp drop in benefits has become a real risk.

———

The absence of action is extremely frustrating since the options for fixing the problem have been known for decades. Social Security is a simple system. It takes in money and pays out benefits. If projected benefits exceed projected revenues plus the assets in the trust fund, either the outflow of benefits must be cut and/or the inflow of revenues must increase. Numerous commissions have contributed to a laundry list of ways to cut benefits or raise taxes. So the problem is not like health care, where the answers for controlling costs are elusive; in the case of Social Security, we know exactly what to do. Reasonable people – Republican or Democrat – could sit down for an hour and come up with a compromise plan.

Just to provide an idea of the magnitude of the required changes, consider a situation where all the adjustments were made by raising the payroll tax. As of the most recent Trustees Report, the payroll tax rate for employee and employer would have to rise by 1.3 percentage points each. Such an increase would enable the government to provide the current package of benefits for everyone who reaches retirement age at least through 2086. A lasting fix would require additional changes. But solving the problem for 75 years would be an excellent down payment towards long-run solvency.

Describing the magnitude of the problem in terms of a tax fix is designed simply to show that the challenge is manageable. Increasing the age of eligibility for full benefits slowly and changing the indexing would reduce the required tax increase.

Who is to blame that, despite the menu of options, no action has been taken? Our political system makes it very difficult for individual politicians to increase taxes 50 years in advance of a projected shortfall. In 1993, trust fund assets were projected to last through 2044. The alternative is to have a commission come up with proposals, and indeed such an arrangement led to the important 1983 amendments. But we have had a lot of commissions, all with detailed proposals for solving the problem, and no action taken. My view is that proposals to privatize a portion of the system served as a major distraction.

At this point, restoring balance to Social Security should be the highest priority. It is easy conceptually; its effects will not be felt until the economy recovers; it would give us a sense that we can manage our fiscal house; and it would restore confidence in the nation’s main retirement program so that people can make good decisions about when to claim benefits.

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 51)

View all Comments »
    • I am an RPN working at a nuinrsg home I strongly oppose abuse on the residents, however the cut backs we have do not help, all of our healthcare workers are under enormous stress to take care of our residents because of all the cut backs in hours to take care of residents by our company/government.Margo

    • Hiya, I am really glad I’ve found this info. Today bloggers publish just about gossips and web and this is actually irritating. A good web site with exciting content, that is what I need. Thanks for keeping this website, I’ll be visiting it. Do you do newsletters? Can not find it.

    • AARP can not and will not come clean about their involvement with the democratic party. They fit together like a hand and a glove. The republicans do not have enough guts to do what is necessary, so where does that leave us. One party uses and pretends to care about poor people and minorities and the other hasn’t got the balls to do what they have been elected to do, but still promises if we elect them they will FINALLY do it.
      Disgusting bunch of liars and crooks, the whole lot of them … we need to start all over. If the founding fathers could see what has become of that which they lived, fought and died for they would wonder why they bothered …

    • my best friend’s step-aunt makes $74/HR on the laptop.

      She was just fired from her Job but last month her income was
      $14,395 just working on the laptop for a few hours.

      Read more here : http://goo.gl/vbb9x

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 2,372 +11 0.47%
Gold
/quotes/zigman/662444/delayed 1,127 +4 0.36%
Oil
/quotes/zigman/2331095/delayed 42.59 +0.03 0.07%
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 2,802 +49 1.79%
Nikkei 225
/quotes/zigman/5986735/delayed 19,045 +471 2.53%
Hang Seng
/quotes/zigman/2622475/delayed 21,839 +758 3.60%
Shanghai
/quotes/zigman/1859015/delayed 3,084 +156 5.34%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,985 +40 1.35%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.03%
Yen
/quotes/zigman/16008150/realtime/sampled 121.20 +0.17 0.14%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.11%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.49%
DXY Index
/quotes/zigman/1652083/delayed 95.79 +0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.25 -0.02 0.02%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.00 0.05%
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 0.84%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 0.07%
Gold
/quotes/zigman/662444/delayed 1,127 +4 0.36%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.73%
DJIA F
/quotes/zigman/38649152/delayed 16,662 +12 0.07%
S&P F
/quotes/zigman/30356461/delayed 1,990 +0 0.02%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.51%

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
  • /quotes/zigman/19622165/composite BBRY+5.89%
  • /quotes/zigman/19815/composite AMGN+1.13%
  • /quotes/zigman/8669138/composite DWTI-28.79%
  • /quotes/zigman/107036/composite ULTA+1.39%
  • /quotes/zigman/68719/composite ADSK+1.77%
X
Powered by StockTwits
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