Crash Survival Zone

How twentysomethings are coping with the recession.
Apprehension, with an enduring edge to it. That’s the general mood among the twentysomethings I’ve heard from during the last several weeks in response to a question I asked about how the recession is making them feel. The fear isn’t just about the present but about the long-term future. [...]

Tens of millions of Americans are enrolled in private employer-sponsored retirement plans — the great majority of them in 401(k) plans, which long ago replaced traditional pension benefits. These plans are easy to participate in with payroll deduction, and most people — once signed up — don’t spend much time thinking about the investments they’ve [...]

As Underlying Assets Drop, So Do Returns on Investments; Insurers Grow Leery of ‘Wraps’

Investors are pouring billions into stable-value funds — just as these popular retirement-plan investments are looking less stable than usual.

Stable-value funds, available only in 401(k)s and other tax-deferred savings plans, are designed to preserve capital and generate smooth, positive returns — hence [...]

The crash has forced professional investors and academics to question the theoretical underpinnings of modern finance. The most basic assumptions of the investment industry, and the products they offer to the public, must be reconsidered from scratch. Indeed, the very reason for the industry to exist – a belief that experts make the smartest decisions [...]

US retail investors poured close to $250bn (€184bn) into bank accounts in the first months of this year, sharply accelerating a flight to safety as they continued to flee volatile stock markets.

Bank savings deposits rose by $246bn to a record $4,343bn in the nine weeks to March 9, according to data from the Federal Reserve. [...]

Effective plans for the future require at least two perspectives.

Many American families are forging a new frugal lifestyle, shopping in second-hand stores, using coupons, and sharing housing. Concerns regarding job security, retirement shortfalls, and weak investment returns have left many feeling threatened that the American dream is no longer achievable.

As Americans “reboot” their dreams and [...]

When the economy is in a downward spiral and the federal funds rate is stuck between 0 percent and 0.25 percent for the foreseeable future, you could reasonably assume that you’re stuck with low-yielding deposit accounts if you want an FDIC guarantee.

Bankrate surveys show that the average yield for a three-month CD is 0.86 percent. [...]

Bartering — the trading of goods or services without using cash — is making a comeback in a troubled economy. It can be as simple as trading baby-sitting with another family, or as complex as an exchange with strangers facilitated by one of the several Web sites that have sprung up to connect barterers.

Bartering ads [...]

In its recent annual report to the Mortgage Banker’s Association, the Mortgage Asset Research Institute described three emerging mortgage fraud schemes that are either new or increasing in popularity.

Foreclosure Prevention Schemes
Elderly and Immigrant Identity Fraud
Builder Bail-Out Fraud

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Consumerist

Instead of having a Boston Tea party in your kitchen, check out the Homeowner’s Property Tax Reduction Kit (PDF, 1.4 MB). It’s got ways for you to check your assessment, identify errors, and how to appeal it. A state-by-state guide gives you the breakdown and specific laws for where you live.

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Consumerist