"Direct mail offers are flowing for business credit cards, many with attractive promotional interest rates and balance transfer deals...while there are many reasons to open an account, there can be substantial risks involved."More info
"There's no shortage of retirement-savings services for the affluent. But for those who fall in the middle of the wage scale or lower, it's a different story.
Millions of workers -- roughly half the work force in the U.S. -- don't have access to a company-sponsored retirement-savings program, largely because many small businesses can't manage or won't accept the hassle and expense of maintaining 401(k) plans. And few middle- or lower-income workers are getting the advice they need not only for retirement savings but also for all their other finances.
Now, a wave of innovation is aimed at meeting these needs.
The pending legislation would require small employers who don't sponsor a retirement-savings plan to automatically enroll their workers in individual retirement accounts, unless the workers opt out. Employees would contribute to these investment accounts through direct deposits of pretax money from their paychecks, up to the annual limit of $5,000.
Employers wouldn't match workers' contributions, nor would they have to comply with any regulatory standards or file any paperwork. The employer would merely act as a conduit, sending part of employees' pay to an IRA, says J. Mark Iwry, a retirement and savings expert at the Brookings Institution. Mr. Iwry helped develop the legislation, along with David C. John, a senior fellow with the Heritage Foundation, another Washington-based think tank.
"We can at least get the employer to make its payroll system available as a way to save," says Mr. Iwry. He and Mr. John are principals of the Retirement Security Project, which seeks ways to better prepare American workers for retirement. The project is supported by the Pew Charitable Trusts and Georgetown University's Public Policy Institute."
Read the full article Targeting the Masses on the Wall Street Journal's Web site.
- Date added:
- Sep 8, 2008
- Retirement Security Project
Eleni Constantine, director of the Pew Health Group’s financial security portfolio, issued the following statement in support of legislation creating an “automatic IRA,” S. 3760, introduced by Sen. Jeff Bingaman (D-NM) and H.R. 6099, introduced by Rep. Richard Neal (D-MA).More info
“The student loan proposal announced by the President today could not come at a better time, as the weak economy and high unemployment are making it harder than ever for people to make monthly payments on their student loans."More info
Yesterday the U.S. Department of Education released a preview of college “cohort default rates” for federal student loans using a more robust methodology that will take effect in 2011.More info
The Project on Student Debt's fourth annual report on the student loan debt of new college graduates. The analysis of the most recent available data found that student debt continued to rise even as it got harder for recent graduates to find jobs, and that debt levels vary considerably from state to state and college to college.More info
Despite the availability of federal money, many students rely on private loans from banks. According to TICAS's Project on Student Debt, the proportion of undergrads who took out such loans jumped from 5 percent in 2003–04 to 14 percent in 2007–08.More info
Starting July 1, borrowers will have a new option: a repayment program that caps monthly payments based on income. It targets borrowers who would have a hard time paying basic living expenses if they had to make standard monthly payments on their loans, says Lauren Asher, acting president for the Project on Student Debt.More info
J. Mark Iwry Joins Treasury as Senior Advisor to the Secretary and Deputy Assistant Secretary for Retirement and Health Policy
The Retirement Security Project announced today that J. Mark Iwry, Principal of The Retirement Security Project, Nonresident Senior Fellow at the Brookings Institution, and former Treasury Department official, has been appointed by Treasury Secretary Timothy Geithner as Senior Adviser to the Secretary and Deputy Assistant Treasury Secretary for Retirement and Health Policy, effective April 27, 2009.
President Obama’s Budget Includes Automatic IRA Proposal and Expansion of Saver’s Credit for 401(K) IRA Savings
The Administration’s budget outline, released today, includes the Automatic IRA proposal developed by the Retirement Security Project.More info
One in 18 homeowners in Arizona is estimated to be in foreclosure by the end of 2010, as a result of a subprime-related loan. Years of easily accessible credit and relatively low home prices that facilitated homeownership in the state have ended, leaving in their wake stricter lending terms and stagnating home appreciation.More info
McCain and Obama Agree on an Important Policy Proposal – The Retirement Security Project's Automatic IRA
In the midst of a campaign with opposing views on most aspects of domestic policy, the presidential candidates have now both endorsed the Automatic IRA.
As traditional pensions fade from the retirement landscape and workers are forced to take a lot more responsibility for their own financial futures, employers are rolling out a variety of features to help workers prepare for retirement.
"Frustrated by the slow pace of federal relief, states around the country are pouring hundreds of millions of dollars into their own programs to stem the rising tide of home foreclosures."
Foreclosure-related filings for June jumped 72 percent in Suffolk and 2 percent in Nassau from the previous month, according to RealtyTrac, an online foreclosure marketplace.