The government has tried to create $ 700B in liquidity and guaranteed another $ 1.4 trillion in interbank loans in an effort to create liquidity for the banks to make loans. However, the $ 700B was diluted by $ 125B used by the government to purchase equity in the banking system via the issuance of preferred stock. In theory there should be approximately
$ 2.0 trillion in new available funds for banks to loan. Sounds nice but they are using the maoney to shore up their weak capital positions so they can keep their doors open.
With the banks net interest margins shrinking due to a lack of cheap deposits (savings) to turn into loans the availability of funds is actaully decreasing.
The main incentive for people to save is to earn a higher interst rate or return on their money. Banks are not going to raise the rate of interest on their savings any time soon as it would increase their cost of funds and decrease their interest margins or their profits.
I really don't understand why so many people think they deserve to be bailed out.
My husband and I could have gotten a sub-prime mortgage, despite our huuuuge student loan debt. We chose not to! We had been there, done that with student loans, signing on the dotted line without assessing the consequences. We are took care of those debts and suffered the consequences of being foolish. I really don't see how buying a house you can't really afford with an adjustable rate mortgage is any different.
I'm sorry, those of you who bought houses you couldn't afford can post your sob story online and make it sound like I should have compassion, but I know several of people just like you in real life, and to a person they are spoiled little princesses who just had to have a house bigger than their sister's or cousin's or best friend's, no matter what it cost.
Forget the starter house, they wanted the mansion right after the honeymoon. They all think they are Paris Hilton. Their sob story doesn't mention how their houses are filled with expensive furniture and electronics, also bought on credit. Driveways with brand new cars while they are online whining about how someone should fix it for them. They can't make their basic needs because they have to pay for their TOYS
Why should the government bail them out of the mess they created? The government didn't bail me out of the mess I created, nor did I even think anyone should. I put my nose to the grindstone and took care of business.
I don't blame you for being angry. I'm angry too!! We all make mistakes, but part of being a decent human being is taking responsibilty for those mistakes.
I have personal experience with eHarmony. I do not have a college degree and as such did not receive as many matches as my brother did, who does have his college degree. eHarmony in my opinion is for people who are dead-serious about dating, not casual daters like myself. Only did a one month membership, so nothing really lost. Found another eHarmony review that seems to be a bit more glowing than most.
As for Match.com.....I think it is a place where the only way you will get a date is if you take off your shirt or show cleavage. I didn't have that much success with match.com
Yahoo personals served me best. I have been told by several people that Yahoo Personals seems to attract "normal" people. Not sure what they mean by this, as I found "normal" people on every dating site that I have tried so far.
I'm with you. I'm self employed and recently my wife had our second child and decided to stay home with the kids. After covering all our bases we found that a high deductible plan with Aetna was going to be our best option. We took a sum of money to cover the deductible and put it in a high-yield checking account in case we need it. We are pro-active with preventative care whichs shifts favor to our side even more. If we have to use it that is fine but we keep more control.
We have to agree with you on many of your points. Although most of us are still working for an employer that has only a few options for health insurance. Personally we like to follow Dave Ramsey and the debt elimination crew bandwagon and have enough saved up for any type of emergency.
We believe that a person should have an emergency plan that is at least 3 to 6 months there annual salary, that way you aren't loosing money paying for a high deductible plan. So if God fordib you should need to utilize your healthcare for an accident or illness, you will be able to deduct it from your savings. Easy as that, and then you replenish that money ASAP. We find that it also relieves so much of the stress that most people would have during these types of situations.
Also, if you are married or have children, by all means elect your spouse as a power of attorney or as legal representation if you are incapacited and need vital decisions made.
Another wonderful message approved by ManlyHunter.com,
Go ManlyHunter.com your life will thank you!!!
If you believe we are selling our future, consider going offshore. I am not talking about moving. Maybe you should look at increasing your international holdings. When the volatility in the global markets start to subside, you may want to consider some international, broad based ETFs.
My experience is just the opposite, my wife and went without insurance for a few years when my company upped the prices. Every time a Doctor's office found out that we didn't have insurance they immediately re-did the bill so we were paying 40-50% less than they charged the insurance company. This was across several doctors in different areas of the country (Texas and Washington DC).
I'm mid-20s, on a high deductible plan with an HSA, and find that it definitely suits my needs as well-- for now.
Even though my negotiated prescription rates are decent, I've found that at pharmacies you can save even more money by signing up for their generic plan-- I get my prescriptions from Walgreens and their price is 50% of the insurance-negotiated price, for the same drug. Costco, Target, Walmart, RiteAid etc. have similar programs too.
Plus, the prescriptions are eligible for HSA spending so as you pointed out, I can use my pre-tax dollars for those purchases. You'd be surprised at what else is eligible-- gel insoles for shoes, contact solution, etc. Not a bad deal if the insurance plan is right for you.
This was a great post! I really enjoyed what you had to say about your father! I do believe he was right on track with how he was spending his money.
I wanted to offer you a link to another blogger who is
doing great work. His work is about emotions, and how it
affects our financial decisions, and how the best approach
to stability in today's market is to resist letting these
emotions control our buying/selling habits. It is really
fascinating work. His name is Brent Kessel, and you can view
his blog at http://brentkessel.com/wordpress/.
You will have to know that kinds of items are covered, and it may vary from plan to plan (your plan should have a list.) They are usually identical to those items that are covered by a FSA (Flexible Spending Account) and include pain relievers, cold/allergy meds, first aid items, etc. Walgreens will indicate which items are FSA eligible with a symbol on the receipt. You should know in advance, however, to be sure you are only buying those thing in a single transaction that are allowed by your HSA plan.
I agree that not all high deductible plans are alike (just as all low-deductible plans aren't alike.) You can get just as much, or as little, coverage as you wish, including riders for things like maternity benefits. Mine covers all illnesses and diseases up to $5 million, including transplants, cancers, etc. It also pays 100% after my deductible, meaning that once I pay my 5K, I'm done for the year. It's possible to get just as adequte coverage as you would need in any emergency situation, you would just need to be vigilant about reading all the fine print and making sure you're covered BEFORE you purchase the policy.
You've listed all the reasons we love our HSA/HDHP too. Being young and healthy helps us out- and the plan covers us for emergencies. I'm excited to fund our HSA to $5,000 then not worry about it practically at all!
Keep in mind that not only do high-deductible plans make you pay more for routine medical issues, they also don't cover as much as full plans do. I had a high-deductible plan, but after a brief scare of leukemia and then getting a melanoma cancer removed from my leg, I had to shell out over $10K of my own money AFTER my deductible was met, all in one year. Just something to think about and keep in mind. Sickness can happen to anyone, anytime.
Dental discount plans are one solution. They technically aren't insurance, but they are also usually more affordable. I use my discount plan to knock my service fees in half at my local dentist. No fancy billing practices. Just show them the card, get the discounted rate, and I pay upfront with my HSA debit card. Cheaper than I could ever do on my own.
I seriously doubt that the government will renegotiate the principal on home loans directly with the home owners. Thats going way too far and I seriously doubt it would happen. I can see them refinancing loans for homeowners at a fixed rate, but eating the loss in equity really wouldn't accomplish anything but a giant handout.
I couldn't agree more with everything you've written. I went the same route last year when I retired and had to provide for my own health insurance. Like you, I found COBRA expensive and it would only have lasted for 18 months; I needed insurance for the long-term.
It is frustrating, though, that we have to have insurance in order to pay the lower negotiated rates. I don't have dental insurance so I end up being charged considerably more than when I did have employer-provided dental ins.
You hit the nail on the head about the negotiated rates.
I found that out when I was still an employee. The site where I worked was "out of area"--i.e. we were small enough and far enough away from any big site that the company didn't think it was worthwhile to negotiate rates with the local health care providers. The result was that we got billed the regular rate.
Back in the 1990s that wasn't so bad. Since then, though, the "regular" rate has changed from being the ordinary rate that most people pay to being the special extra-high rate that only losers pay. My insurance paid at the 90% level, but it only paid 90% of "reasonable and customary" charges. As more and more people paid negotiated rates, the regular rates became less and less customary. Toward the end there, I realized that I didn't really have insurance at all--the 90% of "reasonable and customary" that the insurance company would give me fell so far short of the actual charges, that a serious injury or illness would have bankrupted me.
Negotiated rates are probably the most important part of an insurance package now.
Makes it all very clear doesn't it. How on earth could a gov let that happen?
The government has tried to create $ 700B in liquidity and guaranteed another $ 1.4 trillion in interbank loans in an effort to create liquidity for the banks to make loans. However, the $ 700B was diluted by $ 125B used by the government to purchase equity in the banking system via the issuance of preferred stock. In theory there should be approximately
$ 2.0 trillion in new available funds for banks to loan. Sounds nice but they are using the maoney to shore up their weak capital positions so they can keep their doors open.
With the banks net interest margins shrinking due to a lack of cheap deposits (savings) to turn into loans the availability of funds is actaully decreasing.
The main incentive for people to save is to earn a higher interst rate or return on their money. Banks are not going to raise the rate of interest on their savings any time soon as it would increase their cost of funds and decrease their interest margins or their profits.
I really don't understand why so many people think they deserve to be bailed out.
My husband and I could have gotten a sub-prime mortgage, despite our huuuuge student loan debt. We chose not to! We had been there, done that with student loans, signing on the dotted line without assessing the consequences. We are took care of those debts and suffered the consequences of being foolish. I really don't see how buying a house you can't really afford with an adjustable rate mortgage is any different.
I'm sorry, those of you who bought houses you couldn't afford can post your sob story online and make it sound like I should have compassion, but I know several of people just like you in real life, and to a person they are spoiled little princesses who just had to have a house bigger than their sister's or cousin's or best friend's, no matter what it cost.
Forget the starter house, they wanted the mansion right after the honeymoon. They all think they are Paris Hilton. Their sob story doesn't mention how their houses are filled with expensive furniture and electronics, also bought on credit. Driveways with brand new cars while they are online whining about how someone should fix it for them. They can't make their basic needs because they have to pay for their TOYS
Why should the government bail them out of the mess they created? The government didn't bail me out of the mess I created, nor did I even think anyone should. I put my nose to the grindstone and took care of business.
I don't blame you for being angry. I'm angry too!! We all make mistakes, but part of being a decent human being is taking responsibilty for those mistakes.
I have personal experience with eHarmony. I do not have a college degree and as such did not receive as many matches as my brother did, who does have his college degree. eHarmony in my opinion is for people who are dead-serious about dating, not casual daters like myself. Only did a one month membership, so nothing really lost. Found another eHarmony review that seems to be a bit more glowing than most.
As for Match.com.....I think it is a place where the only way you will get a date is if you take off your shirt or show cleavage. I didn't have that much success with match.com
Yahoo personals served me best. I have been told by several people that Yahoo Personals seems to attract "normal" people. Not sure what they mean by this, as I found "normal" people on every dating site that I have tried so far.
Thanks, guys! I never saw Will's post due to extreme wonkiness with my browser. I added a link in the article.
I'm with you. I'm self employed and recently my wife had our second child and decided to stay home with the kids. After covering all our bases we found that a high deductible plan with Aetna was going to be our best option. We took a sum of money to cover the deductible and put it in a high-yield checking account in case we need it. We are pro-active with preventative care whichs shifts favor to our side even more. If we have to use it that is fine but we keep more control.
We have to agree with you on many of your points. Although most of us are still working for an employer that has only a few options for health insurance. Personally we like to follow Dave Ramsey and the debt elimination crew bandwagon and have enough saved up for any type of emergency.
We believe that a person should have an emergency plan that is at least 3 to 6 months there annual salary, that way you aren't loosing money paying for a high deductible plan. So if God fordib you should need to utilize your healthcare for an accident or illness, you will be able to deduct it from your savings. Easy as that, and then you replenish that money ASAP. We find that it also relieves so much of the stress that most people would have during these types of situations.
Also, if you are married or have children, by all means elect your spouse as a power of attorney or as legal representation if you are incapacited and need vital decisions made.
Another wonderful message approved by ManlyHunter.com,
Go ManlyHunter.com your life will thank you!!!
We support WiseBread.com, there advice rocks.
If you believe we are selling our future, consider going offshore. I am not talking about moving. Maybe you should look at increasing your international holdings. When the volatility in the global markets start to subside, you may want to consider some international, broad based ETFs.
My experience is just the opposite, my wife and went without insurance for a few years when my company upped the prices. Every time a Doctor's office found out that we didn't have insurance they immediately re-did the bill so we were paying 40-50% less than they charged the insurance company. This was across several doctors in different areas of the country (Texas and Washington DC).
Read "A Green Tale" at www.financialtales.com
Read "An Unexpected Tale" at www.financialtales.com
I'm mid-20s, on a high deductible plan with an HSA, and find that it definitely suits my needs as well-- for now.
Even though my negotiated prescription rates are decent, I've found that at pharmacies you can save even more money by signing up for their generic plan-- I get my prescriptions from Walgreens and their price is 50% of the insurance-negotiated price, for the same drug. Costco, Target, Walmart, RiteAid etc. have similar programs too.
Plus, the prescriptions are eligible for HSA spending so as you pointed out, I can use my pre-tax dollars for those purchases. You'd be surprised at what else is eligible-- gel insoles for shoes, contact solution, etc. Not a bad deal if the insurance plan is right for you.
This was a great post! I really enjoyed what you had to say about your father! I do believe he was right on track with how he was spending his money.
I wanted to offer you a link to another blogger who is
doing great work. His work is about emotions, and how it
affects our financial decisions, and how the best approach
to stability in today's market is to resist letting these
emotions control our buying/selling habits. It is really
fascinating work. His name is Brent Kessel, and you can view
his blog at http://brentkessel.com/wordpress/.
You will have to know that kinds of items are covered, and it may vary from plan to plan (your plan should have a list.) They are usually identical to those items that are covered by a FSA (Flexible Spending Account) and include pain relievers, cold/allergy meds, first aid items, etc. Walgreens will indicate which items are FSA eligible with a symbol on the receipt. You should know in advance, however, to be sure you are only buying those thing in a single transaction that are allowed by your HSA plan.
Linsey
I agree that not all high deductible plans are alike (just as all low-deductible plans aren't alike.) You can get just as much, or as little, coverage as you wish, including riders for things like maternity benefits. Mine covers all illnesses and diseases up to $5 million, including transplants, cancers, etc. It also pays 100% after my deductible, meaning that once I pay my 5K, I'm done for the year. It's possible to get just as adequte coverage as you would need in any emergency situation, you would just need to be vigilant about reading all the fine print and making sure you're covered BEFORE you purchase the policy.
Linsey
You've listed all the reasons we love our HSA/HDHP too. Being young and healthy helps us out- and the plan covers us for emergencies. I'm excited to fund our HSA to $5,000 then not worry about it practically at all!
Keep in mind that not only do high-deductible plans make you pay more for routine medical issues, they also don't cover as much as full plans do. I had a high-deductible plan, but after a brief scare of leukemia and then getting a melanoma cancer removed from my leg, I had to shell out over $10K of my own money AFTER my deductible was met, all in one year. Just something to think about and keep in mind. Sickness can happen to anyone, anytime.
How do you know what Walgreens deals/items are HSA eligible and which ones are not?
I wear a peta shirt when i hunt for luck my friends think its a riot LOL
Wisebread has had some very common sense articles recently. Thanks and keep it up!
Dental discount plans are one solution. They technically aren't insurance, but they are also usually more affordable. I use my discount plan to knock my service fees in half at my local dentist. No fancy billing practices. Just show them the card, get the discounted rate, and I pay upfront with my HSA debit card. Cheaper than I could ever do on my own.
Linsey
I seriously doubt that the government will renegotiate the principal on home loans directly with the home owners. Thats going way too far and I seriously doubt it would happen. I can see them refinancing loans for homeowners at a fixed rate, but eating the loss in equity really wouldn't accomplish anything but a giant handout.
I couldn't agree more with everything you've written. I went the same route last year when I retired and had to provide for my own health insurance. Like you, I found COBRA expensive and it would only have lasted for 18 months; I needed insurance for the long-term.
It is frustrating, though, that we have to have insurance in order to pay the lower negotiated rates. I don't have dental insurance so I end up being charged considerably more than when I did have employer-provided dental ins.
You hit the nail on the head about the negotiated rates.
I found that out when I was still an employee. The site where I worked was "out of area"--i.e. we were small enough and far enough away from any big site that the company didn't think it was worthwhile to negotiate rates with the local health care providers. The result was that we got billed the regular rate.
Back in the 1990s that wasn't so bad. Since then, though, the "regular" rate has changed from being the ordinary rate that most people pay to being the special extra-high rate that only losers pay. My insurance paid at the 90% level, but it only paid 90% of "reasonable and customary" charges. As more and more people paid negotiated rates, the regular rates became less and less customary. Toward the end there, I realized that I didn't really have insurance at all--the 90% of "reasonable and customary" that the insurance company would give me fell so far short of the actual charges, that a serious injury or illness would have bankrupted me.
Negotiated rates are probably the most important part of an insurance package now.
The article Will wrote was legit. I used both the trial of the paid subscription and the free service at Karma. Both were spot on. Go the free way.
Linsey