Author: Industry News

Unemployed? Raid Your 401(k) or Borrow From Your Parents?

Unemployed? Raid Your 401(k) or Borrow From Your Parents?

You can’t get a loan when you don’t have an income.
So do you sacrifice your future and withdraw from the 401(k) plan you had at your last job?
If you don’t want Mom and Dad living with you someday, it’s better to take the distribution from your own assets and make saving a priority when you get back to work.” Establish Formal Loan Terms With Your Parents Let’s say your parents can comfortably help you out.
The challenge is that the child may have no means of making loan payments right away.
Dennis LaVoy, a financial advisor with Telos Financial in Plymouth, Mich., adds that discussing your short-term plan to find another job and decreasing your expenses as much as possible so your parents don’t feel you’re spending frivolously can mitigate family tension.
Minimize the Damage From a 401(k) Withdrawal If a 401(k) withdrawal is your best or only option, how can you minimize the financial damage from the lost investment opportunity and early withdrawal penalties?
Similarly, if you have a Roth IRA, you can withdraw contributions without penalty.
She also recommends contributing beyond the minimum required to get the employer match once you’re working again and funding an additional retirement account, such as an IRA, to offset some of the retirement savings you withdrew while unemployed.
(For more, see How 401(k) Withdrawals Work When You’re Unemployed.)
“The long-term impact of a withdrawal from a retirement account is very damaging, especially when it’s someone in their 20s and 30s.” For someone 30 years from retirement, a $10,000 withdrawal that would have grown by 8% per year means a sacrifice in retirement savings of more than $100,000.

Here’s the Average Social Security Check for Retired Workers, Survivors, and the Disabled
Social Security Disability

Here’s the Average Social Security Check for Retired Workers, Survivors, and the Disabled

Whether you realize it or not, there’s likely no social program more important to the financial well-being of seniors in this country than Social Security.
What you may not realize is what Social Security does for more than 19 million other people each month.
How much do retired workers, survivors, and the disabled receive each month from Social Security?
The average retired worker benefit Retired workers accounted for almost $60 billion of the $80 billion paid out in January, and comprise 42.6 million of the 62 million total beneficiaries.
It’s also worth pointing out that the Social Security Administration (SSA) suggests the average retiree should aim to replace 40% or less of their wage income with payouts from Social Security.
The average monthly payout for survivors According to the latest Social Security snapshot, the SSA paid an average of $1,152.22 to “all survivors,” which is an average of the nearly 6 million people receiving a check each month, including nondisabled and disabled widow(er)s, children of deceased workers, widowed mothers and fathers, and parents of deceased workers.
In the case of a widow or widower, as long as the survivor benefit is higher than what they’d receive each month based on their own work and earning history, they can claim the higher survivor benefit.
The average check for disabled workers Last but not least, nearly 8.7 million disabled workers receive an average monthly payout of $1,197.07, working out to $14,363.84 a year.
As with the other categories, the average disabled worker will earn enough from Social Security to move above the federal poverty level, but not by much.
Should an individual have worked, but not have reached 40 lifetime work credits prior to their long-term disability, a reduced-credits scale relative to age can be used that, in many instances, qualifies a disabled worker for monthly benefits.

Travelers introduces claims app for injured workers

Travelers introduces claims app for injured workers

Reprints Louise Esola Travelers Cos. Inc. has launched a mobile application aimed at improving the claim experience for injured employees.
MyTravelers for Injured Employees, a web-based, mobile-friendly self-service tool for workers compensation claims, offers injured workers increased access to medical professionals and two-way messaging with a Travelers claim nurse, the insurer said Monday in a statement.
The app, which can be accessed on a computer, tablet or smartphone, provides workers access to a full claim team, including claim and medical professionals, and helps keep injured employees more engaged in the process to help accelerate their recovery, according to the statement.
Two-way document sharing will also be added to the program, allowing injured employees to easily upload materials related to their claim, including state workers compensation forms, work status reports, mileage trackers and medical reports.
“Our latest capabilities not only speed up access to medical care and make it easier to communicate, but they also address our customers’ top concerns — the health of their employees and the rising costs of health care,” Rich Ives, Hartford, Connecticut-based vice president of workers compensation claim at Travelers, said in the statement.

Wearable device logs workforce twists and turns

Wearable device logs workforce twists and turns

Reprints Louise Esola SAN ANTONIO — Employers and their insurers may have found a missing link in solving the mystery of the Monday-morning workers compensation injury.
Wearable technology can now track and measure movement to gauge the time and extent of a soft-tissue injuries, presenters told attendees at the Risk & Insurance Management Society Inc.’s annual conference Wednesday in San Antonio.
Serving as the twisting, bending and golfer-simulating Guinea pig, Lance Ewing, executive vice president for global risk management and client services at Katy, Texas-based Cotton Holdings Inc., showed attendees how a belt-like device can show how fast he’s moving, where he’s moving, how much force is involved and more.
A screen to the left showed digital snapshots that had the appearance of a hospital heart monitor displaying movement in real time.
“Employees do this all the time, a lot of twists and turns … office employees, plant workers,” Mr. Ewing said, demonstrating.
This monitors what employees do every day.” Eric Martinez, founder and CEO of Clemson, South Carolina-based Modjoul Inc., who brought to the market the device Mr. Ewing was demonstrating, said if employers can know what and when the employers are lifting or moving incorrectly in ways that cause lower back pain and injuries, they can help eliminate the issue with better training.
The information, similar to what is gathered when airplanes experience incidents, can tell the employer when the employee had done something inappropriate or had jerked his or her body, as an example to show that some sort of impact or injury had occurred, said Mr. Martinez.
While targeting fraud is one objective, “advocacy and prevention” for workers and their injuries is at the heart of wearable technology, Mr. Martinez said.
“We say, ‘We are not trying to get you fired,’” he said, adding that the technology can help develop better-movement plans for workers, for example.
“Ultimately, it’s we want to say that after you have been working for this company for 35 years, you won’t have this aching back situation.”

Economists still lack a proper understanding of business cycles

Economists still lack a proper understanding of business cycles

THE aftermath of the 2007-08 financial crisis ought to have been a moment of triumph for economics.
Lessons learned from the 1930s prevented the collapse of global finance and trade, and resulted in a downturn far shorter and less severe than the Depression.
The aim of those studying the macroeconomy has always been to understand the economy’s wobbles, and to work out when governments should intervene.
Governments used both monetary and fiscal policy with gusto in the years after the second world war to maintain full employment.
Yet the Keynesians’ heavy-handed approach never sat well with classically minded economists.
In the years that followed, Keynesians regrouped, borrowed ideas from their critics and built “New Keynesian” models (on which much modern forecasting is based).
Many neoclassical economists rejected the “New Keynesian consensus” and worked along separate lines.
The gap between many neoclassical economists and the New Keynesians running central banks remained unbridgeable.
In a speech in 2005 to central bankers, Raghuram Rajan, an academic who later ran India’s central bank, warned of the risks building within the financial system.
There has been progress since the crisis.

European countries should make it easier for refugees to work

European countries should make it easier for refugees to work

Mr Salha registered with a temporary-job agency, but the local government told him working would mean losing housing and other subsidies.
Even among refugees who arrived in the Netherlands in the late 1990s, only 55% were in the workforce 15 years later, compared with a rate among natives of 80%.
Yet the Dutch unemployment rate is under 5%, and last year 40% of Dutch construction firms said they were struggling to fill positions.
In particular they needed electricians, like the redundant Mr Salha.
Germany does a better job of co-ordinating asylum-claim processing with refugee housing, language and job training, and job placement.
43, issue 11 “The Economic and Social Outcomes of Refugees in the United States: Evidence from the ACS”, by William N. Evans and Daniel Fitzgerald, National Bureau of Economic Research, 2017, Working Paper 23498 “The Labor Market Effects of Refugee Waves: Reconciling Conflicting Results”, by Michael Clemens and Jennifer Hunt, Center for Global Development, 2017, Working Paper 455 “The Labor Market Effects of Immigrants: New Analysis Using Longitudinal Data”, by Mette Foged and Giovanni Peri, American Economic Journal: Applied Economics, 2016, Vol.
Labour market policies for refugees in five Northern European countries”, by Patrick Joyce, The Ratio Institute, 2018, Working Paper No.
The case of Kakuma, Kenya”, by Jennifer Alix-Garcia et al., Journal of Development Economics, 2018, vol.
130 “The Effect of Refugee Inflows on Host Communities: Evidence from Tanzania”, by Jennifer Alix-Garcia and David Saah, The World Bank Economic Review, 2010, vol.
96, issue 2

Armenia’s unpopular president makes himself prime minister

Armenia’s unpopular president makes himself prime minister

But the unpopular Mr Sargsyan, whose second (and final) consecutive term as president expired on April 9th, was just kidding.
On April 17th the national assembly, stacked with loyalists, elected him as the country’s new prime minister.
Even many members of the biggest “opposition” group voted for him.
If imitation is the sincerest form of flattery, Vladimir Putin must be smiling.
Around 10,000 protesters in Yerevan, the capital, took to the streets before the vote, chanting “Reject Serzh!” Police used tear-gas to disperse them.
With hindsight Mr Sargsyan’s intentions have long been clear.
Constitutional changes he enacted in December 2015, which take effect this month, grant the prime minister nearly all the powers previously held by the president.
Get our daily newsletter Mr Sargsyan insists that a parliamentary system will strengthen democracy.
Many Armenians are unconvinced.
Armenia’s IT sector is the fastest-growing part of the economy, making up 7% of GDP in 2017, but it is mainly known for its cheap labour.

Jobless claims fall slightly to 232,000 in late April

Jobless claims fall slightly to 232,000 in late April

The numbers: The rate of layoffs in the U.S. fell slightly in April and clung near a 45-year low, reflecting a booming jobs market in which work is easy to find and companies are scrambling to find help.
Initial jobless claims dipped 1,000 to 232,000 in the week ended April 21.
Economists surveyed by MarketWatch had forecast a 230,000 reading.
The more stable monthly average of claims rose a scant 1,250 to 231,250, the government said Thursday.
The number of people already collecting unemployment benefits, known as continuing claims, fell by 15,000 to 1.86 million.
What happened: Claims rose sharply in New York and California, but those increases were offset by declines almost everywhere else.
The number of people applying for unemployment benefits each week has fallen to levels last seen in the early 1970s.
Big picture: Bright as can be.
Job openings are near a record high, unemployment is at a 17-year low and scattered but growing shortages of skilled labor are forcing companies to increase pay or improve benefits to attract or retain employees.
: “Given the size of the labor force and the typical pace of employment churning, it is hard to imagine that claims could go much lower,” said Thomas Simons, senior money market economist at Jefferies LLC.

7 Things You Need to Know About Social Security Disability Benefits
Social Security Disability

7 Things You Need to Know About Social Security Disability Benefits

There’s also a Social Security program that pays disability benefits based on your work history, which can provide a valuable inflation-protected income stream if you become unable to work.
With that in mind, here are seven things American workers and their families should know about Social Security disability insurance.
There are two forms of Social Security disability insurance Generally, when you hear someone refer to “Social Security disability,” they’re talking about Social Security Disability Insurance, or SSDI.
The minimum duration of work required varies from 1.5 years for workers who become disabled before age 28 to 9.5 years of work for workers who become disabled at age 60.
Second, you need to be disabled (obviously).
How much would you get if you became disabled?
Just like with retired workers, your average Social Security-taxed earnings are used to determine your disability benefits.
In general, the amount you can expect to receive from Social Security Disability Insurance is slightly less than you could expect to receive had you worked until full retirement age.
You’ll need to create an account at if you haven’t done so already, and you can then view your statement, which is packed with valuable information about your Social Security and Medicare benefits, including how much you could expect to get from disability benefits if you were to qualify for them this year.
You may still need disability income insurance Social Security retirement benefits are designed to replace about 40% of the average worker’s income.

Finland is killing its world-famous basic income experiment

Finland is killing its world-famous basic income experiment

While the experiment is still attracting attention internationally, Finnish decision-makers have already made a silent U-turn, scrapping plans to extend the project.
The Finnish government is now eyeing different social welfare solutions.
Instead of unemployment benefits, the participants now receive €560, or $690, per month, tax free.
Should they find a job during the two-year trial, they still get to keep the money.
Read Also: This Finnish guy gets a $600 per month ‘basic income’ for doing absolutely nothing While the project is praised internationally for being at the cutting edge of social welfare, back in Finland, decision makers are quietly pulling the brakes, making a U-turn that is taking the project in a whole new direction.
The initial plan was for the experiment to be expanded in early 2018 to include workers as well as non-workers early in 2018, but that did not happen – to the disappointment of researchers at Kela.
Without workers in the project, researchers are unable to study whether basic income would allow people to make new career moves, or enter training or education.
In recent years, a growing number of tech entrepreneurs have endorsed universal basic income (UBI), a system system in which every individual receives a standard amount of money, simply for being alive.
”When the basic income experiment ends this year, we should launch a universal credit trial,” Orpo told Finnish newspaper Hufvudstadsbladet, referring to a system similar to that currently in use in the United Kingdom, which collects a number of different benefits and tax credits into one account.
No official results of Finland’s basic income experiment will be published until 2019, after the pilot has come to an end.