Archive for January, 2010

If College Endowments are Down, Why is College Tuition Up Less?

Thursday, January 28th, 2010

By Jonathan Bernstein

Jonathan BernsteinA recent national survey[1] showed that the average tuition increase at private colleges for the 2009-2010 school year was 4.3%, the lowest in 37 years. There are various reasons for this drop, including cost-cutting at universities, slowing inflation and concern for students’ and parents’ ability to pay in these tough economic times. However, what’s most surprising is that after years of large increases, this small tuition increase follows negative investment performance of school endowments over 2008-2009.

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New York is Good Medicine for Retirees

Monday, January 25th, 2010

By Nancy Mandell, guest blogger

 

 

Nancy MandellThe healthcare bill and its agenda have been making headlines for months. But while Congress wrangles with language and legislators who see the battle as an opportunity to gain advantages for their states, there is one constituency for whom healthcare is more than the issue du jour.

 

Aging is the common denominator for retirees and those of us approaching retirement, whether or not we qualify technically as senior citizens. And the healthcare issues associated with the aging process make a good argument for spending those golden years in an urban setting like New York City. Read More…

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What? Me Worry?

Thursday, January 21st, 2010

If you’re a female facing retirement, the answer is probably “yes.”

By Nancy Mandell, guest blogger

Nancy MandellThe bad news is that women worry far more than men about financial security in retirement. The good news? In the worry department, men are catching up! Of course it took a major recession for men to get the wakeup call. And some will argue that women are notoriously bigger worriers about almost everything anyway.
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When in Rome…

Tuesday, January 12th, 2010

…Enjoy the Eternal City, but don’t expect your senior discount!

By Nancy Mandell, guest blogger

Nancy MandellHaving just returned from a week in Rome, let me say that it is a great city to visit, but you might think twice before moving there to live!

First of all, there don’t appear to be any senior discounts! Museums reduce entry fees for children and students—but not for senior citizens! At the movie theatre where we saw Sherlock Holmes in English on New Year’s Day, the policy was discounted tickets for children, students and the military!

Furthermore, while the rigid dining hours I found on previous trips now seem relegated only to the most formal of ristorantes I don’t think there is anything like an early-bird special! And at $1.43 to the euro, even the prix fixe menus carried sticker shock. But at least you can sit down for a snack—anything from pizza to panini—at virtually any hour of the day. If you want just a slice, however, you’ll probably have to take it to go. By the way, it’s important never to forget that a cappuccino from the same machine at the same coffee bar may cost you as much as double if you take it sitting at a table rather than standing at the counter. They’re shorter—and to my taste, better—than the US version, anyway, and usually never too hot to handle.

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Leading, Lagging & Coincident Indicators - What does it all mean?

Monday, January 11th, 2010

By Tom Fredrickson

Tom FredricksonOne way not to get pushed and pulled by seemingly contradictory news reports about the economy is to think about leading, lagging and coincident indicators.

News articles frequently mention consumer confidence and how consumers make up 70%  of the economy; they often question whether things can get better with consumers so unhappy and unemployment so high. The market can sell off when consumer confidence numbers are negative.

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Should TIPS Be Part of Your Portfolio?

Thursday, January 7th, 2010

 

By Ekta Patel

 

Ekta PatelInflation is inevitable. At least that’s what investors think when they see prices slowly rising and the fear of above-average inflation begins to take over the financial media. Bond holders are likely to cringe at the thought as their investments are tied up in fixed- rate instruments while comparable bonds begin to sell at higher yields.

What is it that makes inflation a concern for investors? Rising inflation increases the return required from investors. In a simple example, if you thought prices would increase 2% next year, at the very least you would want your money back adjusted for this increase. If inflation is 2%, without accounting for the risk of not returning the money or alternative investments, I would lend you $100 if you promised to give me back $102 at a future date. If inflation expectations increased to 3%, I would want back at least $103. However, if I had loaned my $100 to you before inflation rose, I would be stuck receiving less money than if I were to lend it out today. Therefore, my loan to you declines in value.

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