Financial Stress Coping Guide for Seniors

Financial Stress Coping Guide for Seniors

Financial Stress Coping Guide for Seniors

Last year in August, I wrote an article titled The Retirement Savings Crisis: What Will Fix It?  Jenny Holt read that article and let me know about her eBook:

“Recently, I came across movermike.com while researching a piece inspired by my own family.  A combination of my father being downsized in his 60s and my mother falling ill have combined to seriously affect their financial planning for retirement and has exacerbated their health problems. They have inspired me to write a guide for seniors and their families about the most common causes of financial stress, how it affects the person, and provide some coping strategies. You can read it here:

Financial Stress Coping Guide for Seniors

I thought you might be interested in it after reading your blog post”

Menominee Township Michigan Crevice

Remember this:

600 Foot Crack Opens In Michigan Woods

In Menominee Township, Michigan “A large crevice, stretching almost two football fields, suddenly appeared in the woods near Birch Creek earlier this week.” “It all started early Monday morning between 8 & 9 a.m. Central time, when Eileen and her neighbors heard a loud boom, and that’s when Eileen felt her house start to shake.”

Well, now the mystery may be solved.

A mystery from Menominee, Michigan may be closer to being solved.

A large crack opened in the ground more than five years ago. It was originally thought to be the result of an earthquake. But now there’s another theory.

Eileen Heider remembers the jolt like it was yesterday.

“I was sitting watching television on my recliner, and I start moving. It was weird. Maybe only lasted 15 seconds, but it was moving,” Heider said.

Heider says a large crack in the ground opened on her Menominee Township property in October of 2010. She thought it was an earthquake.

“Yeah, that’s what I kind of thought,” said Heider.

Over the last five years, scientists and students from Michigan Tech examined the area.

“When I got there I was completely shocked by what I saw,” said Wayne Pennington, Michigan Tech Dean of Engineering.

Pennington says it was no typical earthquake.

“The crack is remarkable, but the ridge, a six-foot-high ridge, the length of a football field. That doesn’t happen easily inside the earth,” he said.

Pennington says underground pressure on the limestone rock in the area was released, allowing the crack to form. The scientific term is a geological pop-up.

“Usually it’s caused by the removal of a glacier. But the glacier left here 11,000 years ago. So why did it wait until 2010 to happen?” asked Pennington.

Pennington says there are other less likely theories as to what caused the pop-up. He says the event is unique, and very rare.

“All the stress in that area has been relieved. If it was waiting 11,000 years for the final trigger, there’s not a lot more stress there waiting to happen,” said Pennington.

Meanwhile, Eileen Heider says she’s happy to share her backyard with some geologic history.

“It’s kind of a neat thing in some ways. As long as nobody got hurt, that’s what counts,” she said.

Heider says it was lucky the crack popped up where it did, and not near her home at the top of the hill.

As far as the earthquake, scientists say it did register on a seismograph.


2016-2017 Football Bowl Upsets

#5 Penn State 49, #9 USC 52

#6 Michigan 32, #11 Florida State 33

#10 Colorado 8, #12 Oklahoma State 38

#13 Louisville 9, #20 LSU 29

#16 West Virginia 14, Miami 31

#23 Pittsburgh 24, Northwestern 31

#24 Temple 26, Wake Forest 34

#25 Navy 45, Louisiana Tech 48

Locally:

#4 Washington 7, #1 Alabama 24

Washington State 12, Minnesota 17

 

Useless Advice

Useless Advice

Useless Advice

To see how misleading the Fed’s interest rate hike projections have been in recent years, have a look at the chart below.
As you can see, projected interest rate hikes compared to actual rate hikes differ drastically.

I don’t know what’s worse… the Fed’s forward guidance track record or the people who actually trade on that guidance.

Yet there I was on Wednesday night watching a Harvard-educated “analyst” on Fox News telling “Special Report” anchor Brett Baier that the most important thing investors needed to be concerned with was the Fed’s plan to raise rates three times in 2017.

That’s utterly worthless advice.

Hold on. I am being kind.

That’s moronic advice.

The data clearly shows that the Fed doesn’t do what is says it’s going to do.

Look, does anyone not sniffing bath salts believe the Fed is going to continue raising rates on schedule if the U.S. stock market craters… or if Europe implodes… or if China’s credit bubble bursts?

Please.

There are countless Fed “variables” it will use to justify altering its plan… as it has in years past.

The bottom line is the only thing of value we learned from the Fed this week is they raised rates on Wednesday.

That’s it.

What it does in 2017 has no relation to its stated projections, just as was the case in 2013, 2014, 2015 and 2016.

Worrying about the implications of the Fed’s rate hike timetable is a time-sucking charade designed to bleed you dry. The Fed and the media are never on your side.

Focus on the only truth you know, and that is the price action of all markets.

Let the price action dictate your actions, your buys and sells. That’s what winners do.

Please send me your comments to coveluncensored@agorafinancial.com. Let me know what you think of today’s issue.

Regards,

Michael Covel
Editor, Covel Uncensored

The Fed’s “Debt Monster” Is Calling the Shots

The Fed’s “Debt Monster”

Bill Bonner calls our attention to the danger:

You know our prediction: The Fed will never willingly lead interest rates to a neutral position.

It can’t. The FED  has created a debt monster. It must feed this Frankenstein with easy credit.

This time last year, the Fed began its “rate-tightening cycle.” That is, it began raising short-term interest rates.

It pledged to continue to do so in 2016. But then it diddled and dawdled, fiddled and fawdled… claiming to be on top of the situation… watching its “data” come in like a fisherman’s wife waiting for the return of the fleet… and not wanting to admit she was already a widow.

What it was really waiting for was a place to hide.

The Fed can raise short-term rates. But it will have to follow, not lead. It will have to hide in the shadow of rising consumer prices, staying “behind the curve” of inflation expectations.

That way, the expected real interest rate – the rate of return on your money above the rate of consumer price inflation – never really returns to neutral.

Already, the price of a barrel of crude oil – a key input into prices across the economy – is twice what it was 10 months ago. Leading business-cycle research firm the Economic Cycle Research Institute says the inflation cycle has turned positive.

And already, foreign nations are talking about retaliating against Team Trump by canceling orders and imposing new tariffs in their own versions of “better trade deals.”

This, too, is bound to raise prices.

Forget speculating on stocks, options, or other risky, low-probability moneymaking schemes. This wealth-building formula is the most reliable way to make seven figures in seven years or less in today’s uncertain economy…

Funny Money Antics

But if consumer price inflation were really a concern, the bond market would race ahead of the Fed, imposing its own regimen of rising yields.

The Fed’s increases would be too little and too late to have any real effect on the outcome.

Bondholders don’t care much about nominal rates. If consumer price inflation were to rise to the Fed’s 2% target, for example, bondholders might clamor for a 4% yield to give them a positive 2%.

That is a big increase over the 52-week low of 1.32% the yield on the 10-year Treasury note hit on July 4.

But you don’t get that kind of seismic shift without cracking some flower pots.

Much of the world’s $225 trillion in debt is calibrated to borrowers who will have a hard time surviving a 3% interest rate world, let alone a 4% one.

This is an economy that can stand a lot of grotesque and absurd “funny money” antics. It can survive a bizarre financial world; it can’t survive a normal one.

As inflation expectations increase, investors do not sit still and watch their retirements, their savings, and their fortunes get broken by inflation.

They don’t wait for the Fed’s policy-setting committee to meet. They don’t reflect calmly as the Fed’s wonks collect their “data” and create their “dot plots.”

Instead, they act out. The monster gets mad and starts throwing things.

First through the window are the bonds. They get chucked out before inflation manifests itself fully… and long before the Fed increases its key short-term rate.

Then, the “boom” turns quickly into stagflation… as higher borrowing costs pinch off growth even as consumer prices continue to rise.

But more likely, inflation is not really surging… Not yet.

And most likely, it will be the painfully apparent when the U.S. economy goes into recession next year.

Then, it will be stocks’ turn to get tossed out, while bonds sneak back in through the side door.

It will also be apparent that the Fed has taken another false step… that the recovery was a sham… and that it’s the debt monster calling the shots, not Janet Yellen.

Regards,

Bill Bonner

2016 Week 14 Football Upsets

2016 Week 14 Football Upsets

2016 Week 14 Football Upsets

Now it is on to the Bowl Games.

#6 Wisconsin 31, #7 Penn State 38

#19 Navy 10, Temple 34

Locally: No upset with the Dawgs

#4 Washington 41, #8 Colorado 10

Three Oregon Quakes

  1. 4.8

    178km W of Bandon, Oregon

    2016-11-28 11:07:53 (UTC)

  2. 4.9

    221km W of Bandon, Oregon

    2016-11-28 04:34:42 (UTC)

  3. 2.4

    14km NNW of Bandon, Oregon

    2016-11-28 02:06:37 (UTC)


2016 Week 13 Football Upsets

beavers

Friday:

#16 Nebraska 10, Iowa 40

#19 Boise State 20, Air Force 27

#20 Houston 44, Memphis 48

Saturday:

#11 Louisville 38, Kentucky 41

#17 Tennessee 34, Vanderbilt 45

Locally:

#5 Washington 45, #23 Washington State 17

Oregon 24, Oregon State 34 Bye, bye Helfrich.

2016 Week 12 Football Upsets

Oregon04beavers

Thursday:

#5 Louisville 10, Houston 36

Saturday:

#12 Utah 28, Oregon 30 The winning TD came with 2 seconds left in the fourth, which was reviewed and reviewed and finally the call on the field of incomplete was overturned.

Locally,

Oregon won.

Oregon State 42, Arizona 17

#6 Washington 44, Arizona State 18

#22 Washington State 24, #10 Colorado 38

Portland State 28, Eastern Washington 35

2016 Week 11 Football Upsets

wsu

That didn’t take long.

Thursday:

#17 North Carolina 27, Duke 28

Saturday:

#2 Clemson 42, Pittsburgh 43

#3 Michigan 13, Iowa 14

#4 Washington 12, #20 USC 26

#8 Texas A&M 28, Ole Miss 29

#9 Auburn 7, Georgia 13

#14 Virginia Tech 20, Georgia Tech 30

Locally:

Oregon 27, Stanford 52 Bye, Bye coach Helfrich! You can’t lose seven in a row with almost certain losses to Utah and Oregon State making it none in a row.

Oregon State 24, UCLA 38

#23 Washington State 56, California 21

Portland State 35, Sacramento State 42

 

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