The Savage Truth on Money from Creators Syndicate

Beware of 'Personal Bankers' for 05/20/2008

Tue, 20 May 2008 00:00:00 -0700

You walk into your bank seeking safety. You trust your bank to provide only secure, FDIC-insured deposits. But you want higher yields than the bank certificates of deposit. Those six-month CDs are currently paying less than 2 percent at most local institutions.

Now you're in the danger zone. It's happening mostly to seniors, desperate to squeeze every last drop of interest from their cas ...

Updated: Tue May 20, 2008

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Live Advice from the Money Show for 05/27/2008

Tue, 27 May 2008 00:00:00 -0700

LAS VEGAS: The Money Show in Las Vegas is billed as the "No. 1 Marketplace for Investor Education and Expert Advice." Several thousand investors swarm the booths and pack the lecture and seminar rooms. Each year the show has a distinct personality, which is reflected in the attendees, the speakers, and the products and services being offered in the exhibit hall.

Past years emph ...

Updated: Tue May 27, 2008

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Memorial Day -- America's Future for 06/03/2008

Tue, 03 Jun 2008 00:00:00 -0700

While the Memorial Day holiday is a reflection on our history, it's also a perfect time to assess our future in a very competitive global economy. That was the thinking behind the National Summit on American Competitiveness, held this past week in Chicago.

Organized by Commerce Secretary Carlos Gutierrez, the meeting brought together panelists including current and former corporate chair ...

Updated: Tue Jun 03, 2008

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Student Loans Good News Bad News for 06/10/2008

Tue, 10 Jun 2008 00:00:00 -0700

The world of student loans just became more complicated, unfair and expensive for some borrowers, while others are about to get a great deal! It all depends on whether you're borrowing now — or dealing with loans from the past.

Interest rates on older, variable-rate Stafford loans are about to be cut in half — to 3.61 percent from the current 6.62 percent — sta ...

Updated: Tue Jun 10, 2008

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Bankruptcies Not a Cure-all for 06/17/2008

Tue, 17 Jun 2008 00:00:00 -0700

It's an epidemic. An astounding 91,214 Americans declared bankruptcy in May — up 31 percent from a year ago. More than 1 million Americans are expected to declare bankruptcy this year — up nearly 50 percent from last year, according to the American Bankruptcy Institute. That means at least one in every 100 families will be affected by a bankruptcy!

It's a sign of the times &m ...

Updated: Tue Jun 17, 2008

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Quick, Convenient Kindle Could Be the Future of Books for 06/23/2008

Mon, 23 Jun 2008 00:00:00 -0700

The perfect gift for high school or college grads this year is also a perfect gift for the environment — and may create the most lasting change in books since Johannes Gutenberg invented moveable type in 1439.

I'm talking, of course, about the Kindle — the amazing device that lets you download books, newspapers and other reading material instantly.

I've never been a tr ...

Updated: Mon Jun 23, 2008

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Bit By Bit, Inflation Takes a Crushing Toll for 07/01/2008

Tue, 01 Jul 2008 00:00:00 -0700

Why worry about a little inflation? Because even a little bit adds up over the years and can make a real dent in your wealth — if you haven't prepared with investments that will not only match, but outpace, the ravages of inflation.

Our average historical inflation rate, going back to 1913, is an innocuous looking 3.42 percent a year. But that "tolerable" rate adds up to ...

Updated: Tue Jul 01, 2008

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A Run for Your Money for 07/08/2008

Tue, 08 Jul 2008 00:00:00 -0700

With the passing of the July 4th holiday that inspires our most patriotic thoughts, it's hard to imagine that any American would voluntarily give up his or her citizenship. But perhaps politicians are starting to understand that the taxpaying public is growing wary of being fleeced, either through increased taxes or the stealth tax of inflation, as a way to repay all the debt that Washington ha ...

Updated: Tue Jul 08, 2008

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Say No to Savings Bonds for 07/15/2008

Tue, 15 Jul 2008 00:00:00 -0700

Don't buy U.S. Savings Bonds. How's that for a patriotic column after the holiday weekend? For years, I took advantage of the July 4th holiday to promote the benefits of U.S. Savings Bonds, reminding readers that even people with small amounts of money could easily and automatically start a regular savings program — and get current market rates of return. In other words, Savings Bonds wer ...

Updated: Tue Jul 15, 2008

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Where Is the Safest Place to Put Money? for 07/29/2008

Tue, 29 Jul 2008 00:00:00 -0700

The bank safety scare of the past two weeks has sent depositors scrambling to check the rules for FDIC insurance (see previous columns and the link to the FDIC Website at www.TerrySavage.com). But even though you can arrange extra coverage at your bank by using a combination of single, joint and trust accounts, many people are wondering where else they could put their money and sleep well at ni ...

Updated: Tue Jul 29, 2008

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Students Caught in Credit Crunch for 08/06/2008

Wed, 06 Aug 2008 00:00:00 -0700

The credit crunch is hitting the student loan market. And just because your school approved you for a Stafford Loan doesn't mean you'll find a bank to fund it — unless you hurry!

That's the message for students headed off to college in a few weeks. Even if you had a loan last year, it's possible that your lender will not be willing to come through with money for the 2008 fall semes ...

Updated: Wed Aug 06, 2008

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Good News for Reverse Mortgages for 08/12/2008

Tue, 12 Aug 2008 00:00:00 -0700

Buried in the new Housing Bill (The Housing and Economic Recovery Act) is some very good news for seniors whose main asset is the family home. The new law makes it easier and less expensive for seniors to access the cash value of their homes on a tax-free basis through a Reverse Mortgage. And it expands the amount that can be borrowed.

Let me make it clear that Reverse Mortgages had noth ...

Updated: Tue Aug 12, 2008

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Billions lost, house by house for 08/19/2008

Tue, 19 Aug 2008 00:00:00 -0700

Where did all the money go? Fannie Mae lost $2.3 billion in the last three months, and its cousin Freddie Mac lost nearly $1 billion, bringing its one-year total loss to nearly $5 billion.

Where did the money go? Just look around your neighborhood and see the foreclosed and for sale houses — all worth a lot less than the mortgage money borrowed to buy them. Add it all up, ...

Updated: Tue Aug 19, 2008

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Knowing when to bail for 08/26/2008

Tue, 26 Aug 2008 00:00:00 -0700

When should you sell? That's the most difficult question for a buy-and-hold investor to answer. It's so much easier to think about buying stocks, which only requires a basic optimism that future growth will create wealth. Who wants to think about selling — a decision that is far down the road?

Traders, on the other hand, are always thinking about when "enough is enough." ...

Updated: Tue Aug 26, 2008

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Vets Have Great Mortgage Deal for 09/02/2008

Tue, 02 Sep 2008 00:00:00 -0700

It's tough to get a mortgage today — but that's not news. Every financial institution is tightening lending standards and requiring a higher down payment and raising interest rates. Well, almost every lender is doing that. But if you're a veteran who has been honorably discharged from the military, you can get a great deal on a home loan.

The Veterans Administration (VA) has a mort ...

Updated: Tue Sep 02, 2008

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As Labor Day Rolls Around, So Do Job Concerns for 09/09/2008

Tue, 09 Sep 2008 00:00:00 -0700

Labor Day is the day we take a break from our labor to honor those who work. The first Labor Day holiday was celebrated on Tuesday, Sept. 5, 1882, in New York City, a celebration that was created by the Central Labor Union. Two years later, the date was fixed as the first Monday in September.

As we celebrated Labor Day and the traditional end of summer, this year we also recognize a nati ...

Updated: Tue Sep 09, 2008

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An Economic Scorecard for Obama, Mccain for 09/16/2008

Tue, 16 Sep 2008 00:00:00 -0700

Are you keeping score of the presidential nominees' economic policies? Or do you view the contest simply as an endgame — waiting to see who wins and who loses?

My friends who regularly watch sporting events tell me there's more to a game or match than just the score. Some who follow baseball keep scorecards, representing pitches and strikeouts, base hits and homeruns. Football fans ...

Updated: Tue Sep 16, 2008

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Long-Term Care Insurance Rises for 09/23/2008

Tue, 23 Sep 2008 00:00:00 -0700

Just when America was warming up to the idea of purchasing long-term care insurance to protect family assets from the devastating costs of custodial care, the three largest insurance companies have shaken up the market by raising prices on existing policies, not just on policies to be sold in the future. How should that impact your planning?

Long-term care insurance policies are sold wit ...

Updated: Tue Sep 23, 2008

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Even the Pros Gave in to Panic for 09/30/2008

Tue, 30 Sep 2008 00:00:00 -0700

Gotcha! That's what the market said to all those investors who panicked and sold out of fear on the way down recently. And guess what? The ones who panicked most were the professionals!

They're supposed to know better. After all, they're paid to manage money in the markets. Yet, it was the pros who executed those huge block trades just to get the financial companies off their books befor ...

Updated: Tue Sep 30, 2008

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Embrace COBRA -- or Dodge It? for 10/07/2008

Tue, 07 Oct 2008 00:00:00 -0700

Unemployment is rising, and with the economy slowing, it is likely many more will find themselves without income — and possibly without health insurance. That's where the Consolidated Omnibus Budget Reconciliation Act (COBRA) comes in.

Cobra ensures health insurance protection for those who lose jobs or find themselves suddenly without health insurance because of death or divorce. ...

Updated: Tue Oct 07, 2008

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