Are you afraid of the stock market?

The following is from an article called "Fear of a stock market crisis is preying on the 'pension freedom' generation living on their investments" by Tanya Jefferies for thisisMoney.co.uk

The cost of living, a stock market crisis and running out of money are dominant financial concerns among retired people, a new survey in Britain reveals.

The results of a study of retirement attitudes among mostly well-to-do savers reflect the major behavioural shift towards people investing their pensions to provide an income in old age, rather than depending on guaranteed payouts from an annuity or final salary pension.

Some 10,000 older people took part of a survey carried out by the Interactive Investor website (II), which probed their views on topics including wealth, inheritance and younger generations.

II says the study blows a hole in the cliched image of retirement that depicts a tanned, silver-haired, smiling couple on a golf course or cruise ship.

Two-thirds of the participants disagreed that retirement was a time of pleasure and financial worries loomed large in the findings.

Holidays and travel, and having more time for friends, family, hobbies and voluntary work, are all top priorities for both men and women – but there are some big secrets too, with half of the couples having no clue how much debt their partner has.

How to protect your retirement income plan in troubled times. The survey made the following findings.

Among retirees, 50 percent are concerned about the cost of living, 42 percent about a stock market crisis, 36 percent about affording healthcare, 35 percent about running out of money, and 24 percent about tax issues.

Meanwhile, for those yet to retire, the top financial concern was running out of money, with 26 percent worried about this, 23 percent about the rising cost of living, and 10 per cent about not being able to afford social care - with stock market hazards further down the list at 8 percent.

Leaving an inheritance was the top priority for 35 per cent overall, but 26 per cent had not written a will, while 25 per cent had one but admitted it needed reviewing.

Some 70 per cent of retired participants had not set up lasting power of attorney - an important legal step allowing loved ones to take over your finances if you fall ill - rising to 88 per cent among those not yet retired.

More than half of those surveyed did not know how much debt their partner had and almost a third didn't know how much they earned.

But that fitted with many running their finances at least partially apart, some 26 per cent of couples keep separate bank accounts, whilst 18 per cent have just a joint account and 56 per cent have a combination.

The report said that 17 per cent of women feel confident about maintaining their standard of living in retirement, compared with 30 per cent of men.

However, men are more than twice as likely as women to carry on working in retirement because they enjoy it (34 per cent versus 14 per cent), while women are twice as likely to stay in work due to financial necessity (41 per cent versus 20 per cent).

Dealing with financial issues was considered a chore by 34 per cent of women compared with 15 per cent of men.

Not starting a pension sooner was the biggest financial regret for 17 per cent of participants. And among those not yet retired, 32 per cent regret not saving enough more generally, and 12 per cent that they sat on too much cash instead of investing it.

Lifestyle goals: Having more time for friends and family is one of the priorities for retirement

When it comes to the generational divide, 51 per cent said younger generations have a tougher time financially than they did, and 29 per cent thought the opposite.

But 66 percent of those without a final salary pension - which provides a guaranteed income in old age - have a vague or no idea about what their income in retirement will be, compared with 44 percent of those who have one.

What does II recommend based on its findings?

The firm is calling on the Government to do the following.

•      Tackle inequality early with more dedicated, joined up and resourced financial education in schools.

•      Combat pension inequality throughout people's lives by introducing pension ‘wake up packs’ not just at 50, but at key life stages such as the start of a new job or birth of a child.

•      Get auto-enrolment working better for everyone by lowering the minimum age limit from 22 to 18 sooner rather than later, not the mid-2020s as currently planned. 

•      Change the qualification rules for the £10,000 auto-enrolment earnings threshold to cover people working for multiple employers, helping those - mostly women - who might have several part-time jobs.

Launch a public education campaign aimed at women to help kick start a savings and investment culture.

It is "Free" or so you thought

Have you ever been tempted to try a new product or service on a “free trial” The nation’s consumer protection agency, wants you to know that some companies use free trials to sign you up for more products – sometimes lots of products – which can cost you lots of money as they bill you every month until you cancel.

Or, the “free trial” might come with a tiny shipping and handling charge.  You think you’re only spending a few dollars, but you’re really giving up your credit card information, ending in much higher charges after the trial.

Other “free” plans enroll you in clubs or subscriptions.  For example, a company might offer you an introductory package of free books, CDs, magazines or movies. If you sign up, you may be agreeing to enroll in a club that will send you more products and bill you until you cancel, or to a subscription that’s automatically renewed each year.

So how can you avoid the costs that might be hiding in free trials?

•      Research the company online.  See what other people are saying about the company’s free trials – and its service. 

•      Find the terms and conditions for the offer. That includes offers online, on TV, in the newspaper, or on the radio.  If you can’t find them or can’t understand exactly what you’re agreeing to, don’t sign up.

•      Look for who’s behind the offer.  Just because you’re buying something online from one company doesn’t mean the offer or pop-up isn’t from someone else.

•      Watch out for pre-checked boxes.  If you sign up for a free trial online, look for already-checked boxes.  That checkmark may give the company the green light to continue the offer past the free trial or sign you up for more products – only this time you have to pay.

•      Mark your calendar.  Your free trial probably has a time limit. Once it passes without you telling the company to cancel your ‘order,” you may be on the hook for more products.

•      Look for info on how you can cancel future shipments or services. If you don’t want the, do you have to pay? Do you have a limited time to respond?

•      Read your credit and debit card statements. That way you’ll know right away if you’re being charged for something you didn’t order.

•      If you see charges you didn’t agree to, contact the company directly to sort out the situation.  If that doesn’t work, call your credit card company to dispute the charge. Ask the credit card company to reverse the charge because you didn’t actively order the additional merchandise.

Where to complain

If you’ve been wrongly charged for a free trial offer, report it to the FTC, your local or state consumer protection agency, and file a complaint with the Better Business Bureau.

Ways to Lower Your Blood Pressure

My wife was just given some medical news that required that she lower her blood pressure. I have been on blood pressure medication for a number of years. As we age, it is common to develop high blood pressure or hypertension. In fact, 53% of Canadians over the age of 60 have hypertension.  Unlike other serious medical conditions, you can do something about hypertension, beyond taking medication.  Several lifestyle changes have been proven to lower blood pressure.

Measure your blood pressure at home using a blood pressure monitor. Of course, proper technique, and when you measure is critical for the highest accuracy at home. 

•      Make sure you relax for 5 minutes before measuring.

•      Sit with your back supported with your arm supported on a table

•      Do not move or speak during the reading

Your real average blood pressure is based on the average of all systolic (the higher number) and all diastolic (the lower number), averaged separately after 7 days of measurements. Take two readings in the morning before breakfast, and two readings at least 2 hours after dinner.  When you calculate the averages, do not include the first day’s data.

Lose weight. Statistics Canada reports that over 60% of Canadians between 45 and 64 years of age are “medically overweight (BMI >25) or obese (BMI >30)”.  Body Mass Index (BMI) is a calculation using your height and weight.  Studies have shown that for every 2.2 lbs. of weight loss, blood pressure is reduced by 1.6 mmHg / 1.1 mmHg.

Get Moving. A survey of physical activity among Canadian adults found that only 12% of people over 60 and less than 20% of people aged 40-59 were meeting the guideline of 150 minutes of moderate to vigorous exercise per week. 

You do not need to train like an Olympic athlete, but you do need to work your heart.  Get your heart rate to 55% – 65% of your maximum heart rate (MHR).  A simple calculation for MHR is 220 – Age, so if your 60, your MHR is approximately 160 and you need to exercise at 96 beats per minute.  Ideally, break up the 150 minutes into 20- or 30-minute sessions.  It doesn’t matter what you do, walk, swim, jog, dance or cycle.  They are all great for heart fitness.

Reduce the amount of salt you eat. There is clinical evidence that reducing sodium in your diet can have a direct impact on lowering your blood pressure significantly.  The target is to reduce your sodium intake to 2000 mg or lower, that is 5g of salt a day.  In order to do this, you will have to read the nutrient facts on packaging, and eat more of your own meals where you can limit the amount of salt.

If you have hypertension, consuming a diet that emphasizes fruits, vegetables, low-fat dairy products, whole-grain foods rich in dietary fibre, protein from plant sources, and reducing saturated fats and cholesterol will lower blood pressure. If you are really serious about lowering your blood pressure with diet, follow the “DASH” diet (Dietary Approaches to Stop Hypertension).  There are several cookbooks and recipes available on-line that will help.

Limit Alcohol. Hypertension Canada Guidelines suggest <2 drinks per day, and consumption should not exceed 14 drinks per week for men and 9 drinks per week for women.

There is significant clinical evidence to show that individuals can dramatically lower their blood pressure by changing their exercise and dietary habits.

Perceptions

You have noticed, that people usually see past your appearances? This is interesting because of the fact that we all form first impressions brought on by our personal perception of an individual. 

In psychology, the term perception refers to the different mental processes that we use to form impressions of other people. This includes not just how we form these impressions, but the different conclusions we make about other people based on our impressions.

How often do you make this kind of judgment every day? When you meet someone new, you immediately begin to develop an initial impression of this person. When you visit the grocery store you might draw conclusions about the cashier who checks you out, even though you know very little about this person.

We often form impressions of others very quickly with only minimal information. We frequently base our impressions on the roles and social norms we expect from people.

Physical cues can also play an important role. The salience (salience is the state by which an item stands out) of the information we perceive is also important. Generally, we tend to focus on the most obvious points rather than noting background information. The more novel or obvious a factor is, the more likely we are to focus on it.  

One of the mental shortcuts that we use when creating our impression of a person is known as social categorization. In the social categorization process, we mentally categorize people into different groups based on common characteristics. Sometimes this process occurs consciously, but for the most part, social categorizations happen automatically and unconsciously. Some of the most common grouping people use include age, gender, occupation, and race.

As with many mental shortcuts, social categorization has both positive and negative aspects. One of the strengths of social categorization is that it allows people to make judgments very quickly. Realistically, we simply do not have time to get to know each and every person we come into contact with on an individual basis. Using social categorization allows us to make decisions and establish expectations of how people will behave in certain situations very quickly, which allows us to focus on other things. 

The good news is that people over time can overcome their perceptions and this means that on any given day you can wear any old thing and they'll still get your best, feel your love, and know you rock.