Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts

Monday, January 23, 2012

70-year-old raiding grandma wields legendary and leads her guild


70-year-old raiding grandma wields legendary and leads her guild

Fighting Warlord Zon'ozz
You don't get much more charming than the Knitting Grandma, the surprise hit guest at last fall's BlizzCon 2011 WoW Insider Reader Meetup. Remember her? She charmed our staff and meetup guests alike with her dry wit and talk of Thunder Bluff-themed socks.

Today, we press forward from the warm, fuzzy territory covered by the Knitting Grandma with two window-rattling volleys in the battle against gamer stereotypes:

  1. You don't have to be a granny to knit and play World of Warcraft. Even the author ofClique, the preeminent click-casting addon, gets his knit on.
  2. Whether they knit or not, even grannies can be GMs. Of raiding guilds. Who've raided since original Molten Core. And top the DPS meters. Wielding Dragonwrath, Tarecgosa's Rest. (So yes, that does indeed qualify her to tell you kids to "GET OFF MY LAWN!")

Meet Marthazon, the 70-year-old GM of Spartans on Dalaran (US-A).

MarthazonMain character Marthazon
Guild Spartans
Realm Dalaran (US)

WoW Insider: Level 70 in real life -- and of course, GM of a raiding guild in game ... That's not a usual mix! Take us back to how you got started in this crazy WoW endeavor we all love.

Marthazon: I started playing the game on the Alliance side as Marthazon in January of 2005. I had played for about a month earlier as Horde in order to play with my daughter. She had an undead warlock. My daughter, who is 33, knew that I enjoyed the genre of swords and sorcery in literature and movies. I had readLord of the Rings to my three children as a nightly ritual when they were young. She had bought World of Warcraft when it came out and kept nudging me to give the game a try because she "knew" I'd love it.

And obviously, you did! Coming into the game via grown children who play is a pretty common method of entry for older players, although most folks your age seem to stay on the casual side of things. How did you make the jump into raiding?

I joined Spartans at level 15, and I think that our GM at the time was at level 40 and the highest level in the guild at the time. We did every dungeon in the game as a guild, but our first venture in Molten Core hooked me on raiding. I really loved learning the fights, learning to figure out the most efficient and safest way to down each boss. At the time, the guild was using signups to fill the 40-man raids, and many raid nights we struggled and watched the time tick away before either filling our raid or cancelling the raid.

I turned to PvP when raiding slowed down or stopped. The fact that I managed to reach the PvP rank of Marshal prior to the first expansion says a great deal about the difficulties of filling a 40-man raid.

Marthazon in action
Old school! And now you're the GM ...

During The Burning Crusade, our GM found that he had too much going on in his real life to continue playing, and he passed GM to me in December of 2007. Suddenly I was responsible for enabling every player in the guild to meet their own raiding goals. An in-depth discussion between all officers led to the same conclusion: Move the guild to a set team format and maintain a roster of raiders able to commit to three nights a week. Acknowledge that real life is the more important factor for all players, and do not penalize players when real life prevents participation in the game.

Topping the metersThat sounds like a pretty typical raiding guild, then -- nothing granny-style about that!

We raid three times a week: Tuesday, Thursday, and we end the raid week with the Monday raid. As I said, we raid with a set team – slightly more than 25 players to hopefully cover players that need to post out. We try to hold to a 25-man raiding format but when we can't field 25 players, we are able to quickly form 10-man raids -- two 10-man raids, usually. We are recruiting and hope our future holds a third 10-man -- and give the 25-man raid a better chance at filling spots.

Our members all have my phone and text number, and they are good about keeping me informed about being able to play as I've scheduled them. I set the entire schedule up every month and adjust it as players call when they can't play. Working the schedule every day is the first thing I do in the morning. In addition to the Dragon Soul raids, we also play two ad hoc Fireland raids on the weekends, helping several other guild casters get their own Dragonwrath staffs.

What is the guild currently working on? 

25-man Ultraxion; Spine of Deathwing and The Maelstrom in 10-man. The holidays cut into our raiding quite a bit, along with demands for overtime at many workplaces. With the economy so slow, many players relish the extra pay.

Oops
And on top of all that, we spy a Dragonwrath in your inventory -- congratulations! Tell us a little bit about the long road to achieving your legendary. 

Dragonwrath was quite simply a gift from my guild. I only had to run around a pick up the various items while they killed or after they killed the bosses. The process of collecting the various items takes so long that it requires dedicated raiders willing to show up week after week to make those collections possible. The one solo part of the quest line -- the Nexus dungeon -- was amazingly fun to do, but nothing compared to the work the guild put in.

Now, your husband doesn't raid, so when do you get to play with him -- or do you?

We do dailies together, and we farm for those ever-needed mats that raids require. It is very rare that we miss a day of playing together. We play together mostly in the morning, logging off around noon. I might return in the afternoon for some randoms and those ever-needed valor points, but I also work at our family genealogy. Afternoons often have me playing, as their ads say, family detective at Ancestry.com.

When it comes to raiding, I like fielding dedicated, knowledgeable people that have that singular desire to figure out what the developers are throwing against us and how to most efficiently down the fight. My husband enjoys the storylines and leveling, but says he has no patience for raiding and the seemingly endless wipes.

Getting ready to raid
Sounds like a perfect blend. So has Marthazon always been your main? Do you play any significant alts?

Marthazon has always been my main. I do have alts -- I leveled most races and classes to enjoy their storylines and zones. I have a priest that I can raid at need for the guild when we are short healers. She's fun ... but she's not my mage. The others are only farming alts and taken down for a spin when I need some mats for something.

What's the average age of your guildmates, without considering you and your husband? 

Average age is around 28 to 33. We have a number of husband/wife players and many with young children and several with children almost ready for college.

Do you find much of a generation gap in social interactions with your guildmates? 

Not really. Now and then, someone will say something (especially in trade channel) that I don't quite understand ... I just ask in guild and someone will (usually with much laughter) tell me.

Probably the biggest generation gap I experienced was back when I was around level 40. I should paint in a bit of background first. When I first joined this guild, I was thrilled that so many of the other guildies -- the toons -- were women. I remember thinking that that held great promise for women being involved in technology. The day came when the guild was running Zul Farrak and one of the players, a female night elf, typed something out in chat that made me say in chat, "That sounds like something a man would say." The run came to a standstill as the other players took great pains to explain to me (with much leet laughter) that I was the only woman in the guild at that time and why they played female avatars.

Daily quests
Were you comfortable with computers before you started playing World of Warcraft, or has playing been an introduction to that world as well? 

Computers have long been a part of my life. My father worked with early computers for the GSA as a data programmer after he retired from the Army in the '50s, and I've always been fascinated by the technology. My last job before retiring was computer tracking a large fleet of commercial trucks and their deliveries. I helped design the in-house program to track the data we needed to maintain, and I acted as the office IT.

When my children were toddlers, we bought a VIC-20 and a handful of text games -- you know, the kind where you get a clue like "The bear is sleeping in the clearing. What do you do?" The kids would offer suggestions, and I'd type each suggestion in until we got the right one and the game responded. Two of my children went into computer technology fields.

So you've been at this a good, long while! Is there anything in World of Warcraftyou feel you're slowing down at or getting less efficient or effective at as you get older? Would you say that your age is affecting your game?

World of Warcraft is sort of like the French Foreign Legion of games when it comes to age. As long as you can do your part, it's rare for someone to ask "How old are you?" As long as I can maintain the same focus and the awareness that I want from other players, I feel that I can hold my own.

I'm not the oldest, by the way, in my guild. That honor goes to my husband, who is 72. He doesn't like to raid, however. He is our AH king, keeping our raiders in repair gold. WoW is an excellent and inexpensive recreational outlet for us old codgers. A lot less expensive than golf.

Marthazon at work
Fair enough! That said, what's the continued draw of World of Warcraft for you? What keeps you playing? 

Living on a fixed income, World of Warcraft provides a lot of entertainment that is fun and affordable. At the same time the game doesn't require using the car, fighting traffic, crowds, or weather, buying tickets or paying fees. I have to think about what I am doing in game. I'm not a couch potato just watching a cartoon on the TV. Blizzard's work at keeping the game open-ended and providing new content keeps me coming back.

Thursday, November 19, 2009

As boomers pull out funds, will they pull down markets?

Robert Powell
Robert Powell
Sept. 10, 2009, 12:01 a.m. EDT

As boomers pull out funds, will they pull down markets?

CBO says financial markets won't suffer as millions retire, but some disagree

By Robert Powell, MarketWatch
BOSTON (MarketWatch) -- Many wise men have predicted the stock and bond markets will go into a free fall for decades once baby boomers start withdrawing money from their retirement accounts, but a new report this week by the Congressional Budget Office suggests that won't happen when boomers retire.
"Some economists have warned of the possibility of a dramatic decline in demand as baby boomers sell off their assets to finance their retirement; they assert that the sell-off could cause a dramatic decline in prices," Douglas Elmendorf, director of the CBO, wrote in his report.

Should Lehman Brothers have been saved?

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"An evaluation of the evidence, however, indicates that such a dramatic decline in asset demand and prices is unlikely," he said.
If only that were true. But some people disagree with at least some of the CBO's findings.
"The CBO report provides some ideas, but has a long way to go before resolving the question" of whether demand for and prices of assets will fall as boomers retire, said Alan Gustman, a professor at Dartmouth University, and Thomas Steinmeier, a professor at Texas Tech University.

Demand for assets

For its part, the CBO said it makes sense in principle that if more people are selling assets to finance their retirement than are buying assets, then stock and bond prices would decline. But the empirical evidence, the CBO said, doesn't bear that out. Earlier groups of retirees didn't sell their holdings en masse to the fund their retirement.
Several factors probably explain the evidence, Elmendorf said in the report. "First, retirees generally are cautious about selling assets to finance consumption because they might need those assets in the future: They might live longer than expected, and medical costs, which are likely to rise as people age, could be higher than anticipated. Second, rather than spend all of their assets, retirees might intentionally retain some to make bequests.
"Third, wealth in the United States is highly concentrated: One-third of the nation's financial assets is held by the wealthiest 1% of the U.S. population. The wealthiest people do not spend significant portions of their assets during retirement and in most cases die leaving bequests."
What's more, the report said demand for assets will remain high as baby boomers push back the timing of their retirement due to the recent market turmoil. "Some baby boomers who have lost or spent a significant portion of their assets may defer retirement, shortening the duration of retirement and reducing the amount of assets needing to be sold to finance consumption," the report said.

Will prices fall -- or won't they?

The CBO also said it's unlikely stock and bond prices will fall as boomers retire. "Empirical evidence has not revealed much connection between demographic trends and the price changes observed in financial markets."
Some economists agree with at least some of the CBO's findings.
"Couples in particular do not decumulate [spend down their assets] until late in life, so the immediate effect of boomers retiring will be small," said Michael Hurd of the Rand Corporation.
But he and other economists take issue with plenty else in the report. For one, singles do decumulate early in retirement, Hurd said. What's more, he said even though boomers may not decumulate assets, they will no longer be saving after retirement. "Thus a change in asset demand will result from people moving from an accumulate phase to a neutral phase," he said.
To Gustman and Steinmeier the problems with the CBO's view of the world are many. "There are three additional factors that we would like to have seen discussed in the CBO report," they said. "Each of these omitted factors would, in fact, reduce net assets."

First, according to Gustman and Steinmeier, the CBO incorrectly dismisses the presence and importance of defined-benefit plans. According to Gustman's and Steinmeier's forthcoming book "Pensions in the Health and Retirement Study," most people retiring today have a traditional pension plan. In fact, two-thirds of the pension assets of people near retirement age today are in defined-benefit plans.
In plain English, those retiring today won't draw down their stock and bond portfolios because they don't need to. But as more boomers retire without a traditional pension plan, the need for them to draw down their IRAs and 401(k)s will be greater. Thus, the big whooshing sound you hear.
Second, Gustman and Steinmeier say that by focusing only on personal wealth, the study ignores the effects of Social Security's financial problems. "Over 30% of the wealth of those approaching retirement is in Social Security," they said. "As the boomers retire, that wealth will be drawn down throughout the retirement period, creating additional government debt. Of course, under-funded, government-insured health expenditures will add to these liabilities."
Third, the effect of the stock-market decline is only one of the factors affecting baby boomers' retirement picture, Gustman and Steinmeier said. In their paper, "The Retirement Age Population and the Stock Market Decline," the professors said the stock-market decline alone will lead to an average postponement of retirement of no more than a few months.
However, the effects of layoffs of older workers must be factored in as well. "Layoffs reduce total compensation from full-time work even for those who find another job," they said.
"As older workers are laid off as a result of the current recession, many will have a great deal of difficulty in finding new jobs that will pay wages nearly comparable to what they earned in the past. That will lead some to retire earlier than they expected. Should net retirements by older persons be accelerated, they may draw down their pensions and other assets earlier than they had planned."
The net effect of that, Gustman and Steinmeier said, is that there's likely to be a reduction in net assets.
That suggests a bear market, maybe even a two-decade-long bear market.

Read the CBO's report at this Web site.
 
Robert Powell is the editor of Retirement Weekly. Learn more about Retirement Weekly here .
 
Robert Powell has been a journalist covering personal finance issues for more than 20 years, writing and editing for publications such as The Wall Street Journal, the Financial Times, and Mutual Fund Market News.

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Baby boomers may not pull a bunch of money our of their 401Ks/IRAs each year. But I bet some of them, like me, will be transferring more to conservative funds like money market, stable value bond funds as the years pass. We've tried to build those balances the last few decades while we were working and hope we don't start drawing out too soon.

But my theory is that the more you have, the more you can risk (as in stock funds). The less you have, the more conservative you need to be. In the not so distant future, it will start to look like the money we have in those plans will be needed sooner rather than later.
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When it comes to the boomers' effects on the economy, their investments are just one part of the equation - you also have to look at their spending. If they don't take much money out of the equity markets to live on (a good thing for the markets), they won't be spending like they used to either, which was another driver of the economy. There aren't as many of the next generation to pick up their spending on durables, household items, clothes, etc. at retail which the retirees no longer need anyway since they are no longer in acquisition mode but downsizing. And, in the perfect storm, this recession is going to make several generations more cautious about spending the way the boomers did. So there will still be a depressing effect on the equities markets and the economy as businesses cut back with less consumer demand.
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As a boomer who finds himself in the middle of my age group, here is what I am pursuing. After being a biochemist for 29 years, raising four great kids, and paying all those taxes along the way, I have been laid off by my corporation. Seeing this coming 1-2 years ago, my wife (who also works full-time) and I began buying properties here in Upstate NY in 2008, fixed them, and are renting them out to graduate students and many who work in the Health and Education fields.

We now have a quarter million dollar business (gross) and still growing. We need a property manager to handle the increase in tenants, repairs, etc.. Too bad Obama conveniently forgot the small business person, which everyone knows makes up 50% of this country's employment. I would have proposed at least a $15,000 tax credit to small business (1-200 person company) for each person hired full-time plus I could add $10,000. 1 million business's hiring 1 person equals 1million people off unemployment at annual cost to U.S. gov't of 15 billion dollars, NOT THE BUDGET BUSTING NUMBER OF 798 BILLION FOR JOBS THAT ARE TEMPORARY!

Housing prices in Onondaga Count, NY have only fallen -1% from 2008 to 2009, according to recent statistics. Even if they fall more, so what, my properties are basically Income Funds, paying a monthly "dividend" (minus bank mortgages, repairs, personal Income Tax). There are many more people out there that have to rent because of the tougher bank lending standards, which should have been in place in the first case, anyway, rents are stable if not increasing since 2008.

I am not investing in stock equities, for now, rather I am buying and selling in the bond market; plowing my profits into such bond funds as BND, AGG, and EGF. In 10-20 years I will sell everything (houses), and even if I price in an Armageddon figure of 40-50 cents on the dollar for each property, I still will have invested and diversified my rent profits, get my 20% down payment back, and now the banks are almost paid off with some equity left, maybe (worse case).
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Boomers still have more money than any other age group in spite of the recent markets' swoon. Follow the money people!

Marketers wastefully spend their time and companies' money targeting 18-35 yo's when the majority of stored wealth and purchasing power lies in the 50+ range. Unless these 50+-somethings part with their money, there will be no pick up in economic activity. But, eventually, at some point, Boomers will de-cumulate or dis-invest to fund their lifestyles sans income from employment. Those same 50-somethings will at some point sell assets i.e. stocks, bonds, and real estate, the question is: To whom will they sell, who will buy and at what price? In order for them to de-cumulate or dis-invest, they will need to sell to those who are younger and hopefully have rising incomes to support their purchases. Otherwise, asset prices will decline. How Boomers decide to spend or save and how younger generations fare in regard to their incomes and investments will determine the future course of the economy and our collective futures.

There is a fallacious assumption made by many financial wonks, pundits and talking heads who believe that retirees will need to live on the same income or more, adjusted for inflation, than they earn during their working lives. They fail to realize that many will in fact downsize their lifestyle and with that their need for the same amount of pre-retirement income. Those who can afford to retire, do so because they had the discipline to live below their means during their working lives while they were accumulating assets and wealth. Those who chose to live aspirational lifestyles did so at their own financial peril; as they are now realizing that they cannot sustain or support that lifestyle ad infinitum without sacrificing their retirement. The same profligate spenders will realize that even if they continue to work they will not earn the same amount of money as the labor supply exceeds its demand and hence lowers the price -income- of labor, and therefore, once again they will learn that there is no free lunch when it comes to economics. It's truly a zero sum game where a dollar spent is a minus to the spender and a plus to the saver. Money is not lost it is merely redirected to the saver and invester, redistributed from weak hands to strong.

For those who have accumulated wealth and have been downsized or chose to retire early, and who did not lose money in the recent market meltdown, they will shift to a neutral spending pattern, simply maintaining what they have. That will not bode well for the economy. The unknowns for retirees are still: taxes, inflation rate, longevity and health care costs; obviously too many variables to know with certainty and therefore requiring the prudent to be financially conservative and spend much less than they once did in order to prepare for an unknowable financial future.

For those boomers who are unemployed, but, still have plenty of assets, should they be re-employed, they will continue to save as they always have, but, most importantly, they will spend more than they would in an unemployed status, thus, goosing economic growth. The choice is up to the G and the companies who are smart enough to realize this and the fact that they could rehire those boomers in the 50+ range for less than they think. The re-employment of this group would allow for a smoother economic transition that would benefit Boomers and the younger workers who are destined to replace them as the Boomers transfer their corporate knowledge, life's wisdom and work habits to the next generation. This would also be a plus for the companies who employ this strategy and for the country as a whole.
Just MHO.
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As one of those so called retiring baby boomers (6 years now), my fear is that my dollars are becoming worthless. I'm putting them into the market, into gold, and into copper to protect against the coming inflation and devalued dollar. If everyone is thinking like me, then the market will rise but the dollar will crash. It is survival in the coming galloping inflation.
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This CBO report is another example of "looking backwards", ignoring demographics, and ignoring the programs they know are coming THEY KNOW they Medicare is in warning status. They know SS has no future COLA adjustments like the past. They know the state of the dollar. It is just silly to use what people "use to do" before the crisis and IGNORE the changes that the CBO KNOWS are coming. Compared to prior generations, this generation is looking at cuts in Government benefits that will equal their net worth (on the average) at the date of their retirement.
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Cyclone and MrMoney

You are both ignoring the 800 pound gorilla in the room, and that is the fact that population growth is no longer a problem, and 6 billion is likely about all the people that will populate the earth at one time. A shrinking population in most of the developed world will be the larger issue for our economies. Immigration will cease to be an issue here, and will become a necessity, as more and more workers are needed to pay the taxes required to support our aging population with the entitlement programs we have promised them.
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"Empirical evidence has not revealed much connection between demographic trends and the price changes observed in financial markets." - WHAT?

This article smells like propaganda giving you cause not to panic about the inevitable!
I guess giving them a little more time to squeeze $ out of the baby boomers.
But possibly not.
Maybe just naive state workers pushing for an economic comeback (which ain't gonna happen for the USA)
Any way - Sounds like you can bet on the exact opposite happening to what these guys say!

Harry Dent Author of The Great Depression Ahead is my expert on demographics:

http://www.hsdent.com/ny_times_bestseller_the_great_depression_ahead_book_tour/

I agree with him on 90%
But I feel:
1. The Great Depression is already started = Effects will not be as bad as the Mort. crises has already taken us so far down.
2. The masses of population in Brazil, Russia, India and China will save America from the greatest impact. (World population has more than doubled since 1950)
3. And lucky for you. America has imported almost 20% more population in ages between 30 to 40 years. Their positive contribution to the economy will support the masses moving into retirement.

Something for you guys to think about.
I strongly recommend the link supplied if you want to survive what IS coming.
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One simple forecasting tool predicts, with uncanny accuracy, the health of the economy and the stock markets over many decades to come: the (demographic) Spending Wave.

Mr. Dent first used the Spending Wave in 1988 to predict the raging bull market of the nineties long before it became obvious. At that time, he stated that the Dow would reach 10,000 or higher and that this boom period, characterized by high domestic productivity and falling interest rates, would last until approximately 2010. By adding immigration data to my original model and making a few other adjustments, he raised his Dow forecast much higher. This fine-tuning increased the accuracy of the Spending Wave without changing its fundamental reliability.

The Spending Wave predicts the health of our economy by lagging the birth index forward 46.5 years. Why this number? That’s how old each of us is when we reach our predictable peak in spending today. By our mid-forties,the average American family has purchased the largest home we’ll own and all the furnishings to go with it, and we spend money on clothing, food and education for our teenage children. Once the children leave the nest, the fixed costs remain the same but variable costs suddenly start dropping. Though this frees capital for discretionary spending, it marks the end of the necessary family spending that drives the economy.

http://www.hsdent.com/spending-wave/
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What Mr. Dent’s discussion fails to include is the US workforce reductions created by the population declines of the 1960s and 1970s. Without increasing immigration, the GDP would likely fall due to the reduced purchasing power of my children and that of my retiring or death. Now that my kids are entering their prime purchasing age, we as a nation are experiencing the lack in their purchasing power. The younger generations cannot match the purchasing power of their baby boomer parents. As a result, we have the housing bubble that started in 2005 and the younger generation’s inability to acquire all the homes inspired by the housing explosion of the past. Now factor in the reduced baby boomer purchasing power resulting from the present economic crisis, the loss of value in their homes and their fading from the scene.

As Dent’s chart shows, the birth rate will fall until the population increases of the 1980s kick in between 2020 and 2025 and will likely not reach the levels of 2006 until away past 2056. As a result, the GDP should suffer without a heavy dose of immigrants.
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The author of this story omitted several key factors.

First, its not like the U.S. baby boomers only own U.S. equities.

Some own international equities.
Some own bonds.
Some own real estate
Some own CD's.

So it is not like they will suddenly pull the trigger and sell equities only to raise cash.

Second, all U.S. equities are not owned by old U.S. investors.
Foreign investors own a lot of U.S. stocks and may not sell any time soon.
Many equities are owned by sovereign wealth who have no plans on selling.

And while it may be true that aging baby boomers may scale down their investment purchases, we do have a younger generation that will need to save like never before.
They don't have the luxury of appreciating real estate that boomers had.
They can't count on social security like boomers have.
There are far less pension plans offered to the younger generations.

So younger people have no choice but to invest heavily in stocks and bonds for their own future.

So bottom line is that boomers do not make up all the demand for US investments- far from it.
Demand will be there from younger generations and foreign investors.
And many boomers have pensions, social security and won't have to sell- they will leave an estate for their children to spend/invest.
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It has long been forecast that boomers would significantly impact every facet of society much like a pig moving through a python.
Consider if you will:
1) The number one fear of the elderly is outliving their money. As people age they become increasingly more conservative in their expenditures.
2) Life expectancy is rapidly increasing and will continue to rise. Today average life expectancy is 78. At the turn of the last century it was but 52.
3) This market has yet to experience a major correction. We face more problems than we have resolved (energy dependence, unaffordable entitlements, a disproportionate percentage of society retired, unwinnable wars, falling dollar, declining standard of living, etc). That drop in value will either further erode equity assets or scare boomers to more conservative and income certain investments with what is left.
4) Boomers are historically POOR savers. They have been big spenders, heavy borrowers, known for their need to consume, not save. As a result they are unprepared for retirement, will be likely to defer retirement and possibly work until physically unable. This group is heavily leveraged compared to their parents.
5) Typically, marketing does NOT target seniors because they are atypical spenders, certainly not reflective of the historic perception the American consumer has insatiable appetite to consume. Right now boomers are in their peak earning years.
6) Given the onset of boomers attaining retirement age I fully expect them to seek smaller and less costly housing. Some is attributable to lower income, an attempt to wring some equity out of their existing home, but also to bring operating expense in line with lower income.
7) If, as I expect, we will be decades digging out from this economic malaise, boomers, even with investments, will be shifting out of stocks that have or will reduce dividends.

Just imagine the huge shift as boomers migrate from consuming, paying taxes, investing, etc to becoming an economic drag on our society. And yes, I am a boomer.
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I can only respond by citing my personal situation and many of those that I know which includes people that are millionaires to those with almost nothing.

The stock market decline took at least 30-40 percent of the wealth away from middle American on up. Many have decided lately because of increased cc minimum payments to reduce or eliminate any further 401k contributions. If companies do not contribute the incentive is almost entirely gone to continue putting money into 401Ks that often are rather limiting with their selections. Our 401 has been with several investment groups that we had nothing to do with deciding that fact. Often there are only handful of funds that we are qualified to invest in. Both my bank and company have switched funds this year due to poor performance this past year. Again, we have zero control over this. We once were invested in a company pension plan that was easier to decide when to get in and when to sit it out. Back in the 80s when the market crashed, everybody I knew that worked for this mega company contributed the most they could knowing that the price of the stock was ridiculously low. We even took our private money and bought more stock outside the 401K contributions. I wish I had bet everything I owned at that time because we knew the company very well and knew our investment was very safe. 401 investing today is like throwing darts. I hate it. I would do so many things differently if I had to do it all over again. We all got conned.

This is what I know. I have lived in many regions of the country and for personal reasons I have always been rather drawn to the greatest generation. I found my generation, baby boomers to be spoiled and self serving. The greatest generation mostly lived frugally and also was guaranteed a company pension. That combination is a winner. The retirees I knew and spent a great deal of time with took very nice trips every year until they couldn't, but they lived in very modest homes. I think baby boomers would balk at such modest homes. Those retirees had long ago paid off their homes and cars and settled into a life pretty much devoid of stress. They just plain didn't want much. My mother was one of them. At the time of her death, which was 83, she may have had about 90,000 left in the bank. Nursing homes prior to that ate up much of her wealth. My mother-in-law the same situation. She lived in a very nice condo complex in Fla and barely spent any money. Everybody living in that large community had just a bit of SS and some savings that might have amounted to 50,000. My aunt that uncle the same.

The baby boomers are relying mostly on SS and a touch of those with a pension, but mostly that up and down 401 plan. After this year's slaughter many of us are just trying to preserve what we have and pay off any debt we have and learn to live with a lot less. We have flat run out of time. The thousand of lake communities in this part of the country have all their second homes for sale. The boomers are cleaning house. Those privately investing have ceased to do so. They don't trust the market and have turned into those loathing the government. Many still have high school kids to get through school.

The baby boomers may find some part-time jobs to supplement their drastically reduced income stream. I know millionaires that have ceased investing but can't find investment instruments with security and a decent return. So if you retired with 1,000,000 thinking you could get a 5 percent return and now can only get a 2.5 return that is a huge income stream reduced. Prior to this crisis many thought 7 or 8 percent was doable, but now.... The more time they have now to understand the markets the less they like what they hear. Ignorance is often bliss.

At the time of Biden's nomination, his financial records were revealed. He had few investments and in fact a 770,000 mortgage on his home that is probably worth a lot less today. He is at retirement age currently. He of course was counting on his much younger wife and her pension and his government pension and so he apparently didn't investment much at all according to records released.

Less than 8 years ago when we bought a farm, we looked at many large pieces of property. What I found out with this long property search was how many baby boomers that lived large and looked like they were very rich were highly leveraged. They owned multiple properties but at closing frequently had to pay to close. They had long ago borrowed that money.

Things are rarely as they appear. The CBO in this case is WAY TO OPTIMISTIC.
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The Gustman and Steinmeier analysis while adding somewhat to this debate falls well short of the mark in its myopic focus on the "big selloff". They simply did not look at the asset most likely to bear the brunt of the Great Retirement--housing.

While defined benefit pension plans will see withdrawals, those plans that are not in "closed" status (think state teacher retirement, large corporate plans, state and federal plans) are set up to service a population that is assumed to go on in the future; that is, just because some members are retired doesn't mean that the company or governmental entity will cease employing additional people, new teachers not be hired, etc., etc.

Their concern over asset drawdowns on financial valuations is misplaced. Rather they should look at the effect on housing, as many Boomers have stated in surveys that they expect their homes to provide the funding for their retirement. Unlike financial assets, residential housing assets are very broadly held, and unless buyers can be found for the properties being sold to fund the Great Retirement, housing prices might not only never come back to 2002-2004 levels over the next 15 years, these prices might actually slip another 20-33% as wave upon wave of Boomers search for money.

All this is further compounded by the fact that I can sell my financial assets to someone in India, China, or Brazil without difficulty. However, that cannot be said to be true of my house. Stock is fungible, but my house needs to be sold to someone else who wants to live at that precise geographic location. Those in SMSAs with growing elderly demographics better take note and sell early (before 2018) if they will be able to sell at all.
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"There is no means of avoiding the final collapse of a boom brought about by credit expansion.

The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-Ludwig Von Mises
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Look back to the time when we had balanced Trade , and a Recovering deficit from a Time of Inflation , and what was making those wheels turn in that direction ........then look to when those wheels were changed to reverse mode ..... and argue to the fact that while there were contracting deficit spending balance in Government , in the late 1990s , the Real Growth in Markets was declining and lead to the tech bubble crash in 2000-1 because of the devaluation that was taking place in the relocation of Jobs/ wealth creation from the change in Trade law , BUT , If we would have kept the dollar sound through our Reagan / GATT Tariff Trade rules in the 1980s would we have kept our Capitalists system solvent and leading the world economies to better quality of life achievements , like it has done forever , so that the rise of Social Justice would not be rising up in the debate on Equality ???? I believe the Change of Tariff Law back in 1994-95 was the beginning of this demise we see today , and the Giant Sucking Sound Ross Perot talked about in the 1992 Presidential Campaign , http://www.thenation.com/doc/20011231/greider

Subject: Please read this ; The Road to Socialism USA http://www.cpusa.org/article/articleview/994/1/154/


Please read this , and ask if America would have built all that we have consumed over the past 15 years of Tariff Free Imports , the very Tariffs that would have been paid to offset the losses to Medicare and Social Security , for the loss of wage deductions that by relocating jobs out of the USA has caused , which everyone keeps forgetting to talk about , that maybe we wouldn't need Socialism ???

The High Cost of the China-WTO Deal
Administration's own analysis suggests spiraling deficits, job losses
by Robert E. Scott http://www.epi.org/publications/entry/issuebriefs_ib137/


Or was it all planned ???
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I work for a large Japanese multinational. Before that I worked for a Swedish multinational. I have known and worked with many Europeans and Asians of several different cultures. The standard line is "It's a great system as long as you don't get sick." I also hear a lot of "It's free but you get what you pay for." I know two Dutch who received absolutely NO TREATMENT for cancer after they were diagnosed. Their doctors basically said, "Get your affairs in order." as soon as they made the diagnosis. Each one died less than a year after diagnosis although they did give them plenty of morphine to dull the pain.
If you really want to know how good the French and other European "free" systems are, then I suggest you take a look at the recovery rates for prostate cancer. In the US we have a recovery rate of close to 90% because we treat prostate cancer. In Europe, the recovery rate hovers around 40% because they do not treat prostate cancer. It is a painful and lingering death when untreated.
The Euro systems are actually a self fulfilling method of murder. The doctors know they don't have the funds to treat serious illnesses, so they don't, then they tell the sick patients; "See, your chances of recovery are slim, so we can't throw money away treating your illnesses."
To answer your question, yes, I have been out of the country so often I'm on my third passport. That is precisiely why I do not want a European or Japanese health care system. I look at healthcare as a luxury item which I am able to afford. I do not want to turn my healthcare decisions over to a doctor whose only incentive is not to spend my own money not treating me.
And the reason why the French may seem healthier than us is because as soon as they get sick, they die. You don't see many old, obese, or infirmed French hanging out at sidewalk cafes. The faster they die, the less money is drawn from the system.
I understand that car wreck victims and women delivering babies get speedy service, though.
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Sunday, October 18, 2009

Are you ready for Generation X? - Changing World View - the five generations

KEY CONCEPTS
* Generational Analysis
* Generation X
* Differences between Generations
* Demographic Changes
* Changing World View
* Differences in Values

IN SEPTEMBER 1999 MY partner attended a regional, multi-county planning and dinner meeting on pediatric asthma. People arrived from all sorts of concerned professions: teachers, public health officials, lung association representatives, academicians, and private physicians. He sat at a table across from an interesting woman, who was about 20 years his junior. She was decked out in complete "gothic" style: a long, black, form-fitting dress covered her from her neck to her ankles; her hair was close cut, spiked, and dyed bright red; her face was made up ghostly pale white with very dark lipstick. They introduced themselves to each other. "I'm doing a fellowship in pediatric pulmonary medicine at the university," she said. Once again, our world has changed.

Today nearly all the medical students and house officers entering our profession are members of the so-called Generation X. A physician executive reading this article is more than likely one or two generations older than the Gen-Xers, who will be coming into medical practice over the next two decades. The differences between generations will have significant consequences for the shape and direction of American medicine in the coming years. What are those differences? Should they concern you today?

Just as there was a major disparity between the Baby Boomers and the two generations who came before them, the members of Generation X (and Generation Y, who are younger still) have values and aspirations that differ from the Boomers in significant ways. Physicians in leadership roles must start paying attention to these differences as if the success or failure of their careers and organizations depend on it, for in fact this is exactly the case.

Generational analysis

Much as one might approach John Naisbitt's Megatrends (1) or Faith Popcorn's cocooning predictions, (2) generational analysis is interesting "pop-sociology" that can lead to helpful insights or be taken too seriously and stretched too far. Authors William Strauss and Neil Howe have presented a framework for looking at the generations. (3) They attempt to use generational analysis to predict the future of the United States for the next 70 years. Perhaps this is extending a useful idea too far--insight that can make sense out of the past does not necessarily predict the future. But the core analysis of generational trends can lead to some instriguing and useful conclusions about our present conditions.

Strauss and Howe named five generations, each with a different way of viewing the world based on collective experiences while growing up: (1) G.I., (2) Silent, (3) Baby Boom, (4) Thirteenth, and (5) Millennial. They argue that the types of generational differences are cyclical and recurring in American history. (3) We will simply consider the differences between the generations and what they mean to medical management.

The various generations do not have exact boundaries; for example, different authors will list somewhat differing birth years for the Baby Boomers. Obviously, not all members of a generation have exactly the same attitude on any given issue. Generalizations about group attitudes and outlook will have many exceptions. Even today, a member of Generation Y might more closely fit the description of the Silent Generation. Nevertheless, if we step back to see the forest rather than the trees, certain overall trends and directions appear.

1. 0.1. Generation: born between 1901-1925

The generation that survived the Great Depression and fought World War II was indelibly marked by its heroic journey. Tom Brokaw chronicles the history of this group in his current bestseller, The Greatest Generation. (4) Those members of the G.I. Generation who are still alive are 74 or older. This cohort of Americans believes in civic virtue and upward mobility--the American Dream. Throughout their lives they tended to be joiners of churches, professional organizations, and clubs. While most would express support for rugged individualism, the G.I. Generation lived for the camaraderie of group experience.

The shapes of our major institutions--civic, religious, fraternal, and professional--bear the mark of the G.I. Generation. These folks can rightly state that they left the world a better place for their efforts. John Wayne was the movie hero of this generation, who won every battle he fought. The 1942 classic film, Casablanca, defined romance at that time: hard edged, war torn, and bittersweet at the end. The heritage of the G.I. Generation was handed on to the Silent Generation.

2. Silent Generation: born between 1926-1945

Calling a group the Silent Generation sounds pejorative, but it need not be so. Most were too young to fight in World War II, but they were greatly influenced by the surge of patriotism and self-sacrifice of that struggle. The Silent Generation admired the G.I. Generation and had no wish to differentiate themselves. They may not have challenged the status quo, but they have been good caretakers of the institutions and the world they inherited.

People born between 1926 and 1945 have lived in the better world left to them by the G.I. Generation, and they worked to extend that environment rather than change it. The dominant motif for the Silent Generation is allegiance to proper principles such as law and order, patriotism, and faith. They expect to save and pay for what they get. "Don't rock the boat" could be their motto.

They lived in a Norman Rockwell world, or at least they remember it that way. In the 1940s, '50s and early '60s not as much attention was paid to the many areas where reality did not measure up to the innocence of a Saturday Evening Post cover. The movie Pillow Talk (1959) with Rock Hudson and Doris Day presented a lighthearted and mostly innocent view of romance and sexuality typical of the Silent Generation code. Certainly Hudson's off-screen sexual orientation would have been unthinkable for his millions of fans. Television shows like Ozzie and Harriet and Father Knows Best captured much of the tenor of this generation. More recently, the movie Pleasantville used the same set of assumptions as a foil for 1990s humor and as a statement that everything was not as wonderful as it appeared in the "black and white days."

3. Baby Boomers: born between 1945-1964

The term "generation gap" was coined to describe the gulf between the Baby Boomers and the two generations that came before them. This difference in outlook was profound and ongoing. The Boomers' journey has been one of self-discovery based on humanistic, altruistic, and narcissistic assumptions. The impacts of psychology in child raising were first applied in a generalized manner to this cohort of children raised in the 1950s and 60s. Perhaps this accounts for some of the differences between the generations; although blaming all of the generation gap on Dr. Spock seems facile. The big rift came from 1964 onward, starting with the Free Speech movement at Berkeley and moving onto the protests of the Viet Nam War and the Woodstock mindset. Anyone who lived through those times realizes that many of the assumptions of American pride, purpose, and trust were injured or lost during those angry years.

At 76 million strong, the Boomers have always been demographically powerful, so they are used to being the most important generation due to sheer numbers. In the 1950s and early 60s America built more schools to teach the Boomers. In the 1970s and 80s the U.S. had an enormous housing boom to build homes for Boomers. At every stage of life, the Baby Boomers have been the dominant force in our society. As they age, this will prove even more true. (5)
Instant gratification has always been key: buy now, pay later. This generation does not fear taking on debt the way the G.I. and Silent Generations did. The Boomers can be very moralistic, but they do not tend to accept authority statements or institutional principles regarding morals and ethics; they would much rather work things out for themselves--even if they get it wrong.
They are not joiners, and they are not as likely to sacrifice personal pleasures for the good of a group. Family stability has suffered as many Boomer parents have divorced and recoupled in an effort to find personal fulfillment. On a spiritual level, Boomers often mix and match religious traditions to suit themselves, rather than submit to the dogma and teachings of any single religion. "In an age when we trust ourselves to assemble our own investment portfolios and cancer therapies, why not our religious beliefs?" (6)

The quintessential Boomer movies would be The Graduate (1967) and Easy Rider (1969), along with Woody Allen's take on romance in Annie Hall (1977). In the early 70s the TV show All in the Family shocked its audience with its humorous and no-holds-barred look at the tension between the Silent and the Boomer generations. The invasion of the Beatles in 1964 set off a wave of generational angst over the haircuts of John, Paul, George, and Ringo--laughable today.

4. Generation X:
born between 1965-1981

This generation is called Thirteenth by Strauss and Howe because it is supposed to be the thirteenth one since the generation that founded the United States (born between 1701-1723). More commonly they are known as Generation X. The earliest use of this term appears to be the name of an early 1970s English band, which was rock star Billy Idol's first group. Generation X is also the title of a book by Douglas Coupland, which was the first to connect the term with this Thirteenth Generation. (7)

This is the "Baby Buster" generation, comprising about 41 million people-25 million less than the Boomers. They are wedged between two much larger birth cohorts and thus feel demographically overlooked. Gen-Xers feel that they will get less in a material sense than the preceding generations got. This changes their approach to materialism itself. Their journey is as residents of a new world-a world that changes shape rapidly and continuously. Insecurity is a major theme in Gen-X consciousness.

Many Gen-Xers sense an almost psychedelic reality that cannot be trusted. The 1999 hit movie. The Matrix, played to this notion that reality differs greatly from its perception (along with a great deal of video game style violence and a patina of religious symbolism) and resonated especially well with male members of Generations X and Y. (8) A look at the romantic side of Generation X life is presented in the 1997 movie Chasing Amy. This film's depiction of the comix underground with its sexual frankness and ambiguity can make anyone over 40 feel very old indeed, but the viewer gets a glimpse of Gen-X attitude with all of its complexity. For this generation, ambiguity is central to life itself, while reality and security are self-created.

The emphasis of Generation X is more on close friends and virtual families than on material success or traditional associations. The television show Friends captures this essence--young people creating their own extended family or "pod" in which they look out for each other. Personal experience counts for everything with the Xers. Institutions are highly suspect, but for different reasons than with the Boomers, For Boomers institutions promote repressive dogma; for Gen-Xers they lack authenticity or even reality.

Campus minister Jimmy Long argues that Gen-X is the first generation to be fully postmodern in its rejection of Enlightenment ideals. (5) He compares the four basic traits of Enlightenment thinking with their replacement Postmodernist parallels which typify Generation X:

Enlightenment         Postmodernism
Truth Preference
Autonomous self Community
Scientific discovery Virtual reality
Human progress        Human misery

The transition from Enlightenment to Postmodernism started long before Generation X was born. Nietzsche predicted much of the postmodern condition more than 100 years ago. With their strong sense of autonomy, the Baby Boomers kept alive some last flickering flame of Enlightenment thinking. If Long is to be believed, that flame finally died out with the advent of Generation X.

5. Generation Y:
born between 1982-2003

Generation Y (following X) is called the Millennial Generation by Strauss and Howe. This generation is just starting to graduate from high school. Demographically, they are not quite as big as the Baby Boomers, but at 60 million they are big enough. Gen-Y will have an enormous impact on business and infrastructure just as the Boomers did. Already they are changing the face of advertising and marketing. (10) This is a generation to watch because they will be socially significant through sheer numbers alone. If you are a Boomer, get ready to be displaced as the center of attention of business and marketing. Companies such as Levi Strauss and Nike are feeling the pinch already as their products are being ignored by Gen-Y in favor of new and trendier brands.

Generation Y has grown up with computers, email, and instant communication in the same way that the Boomers grew up with the telephone and Gen-X grew up with television. They have no memory of a time when the technology did not exist. "(T)he Internet.... has sped up the fashion life cycle by letting kids everywhere find out about the most obscure trends as they emerge. It is the Gen-Y medium of choice, just as network TV was for boomers. 'Television drives homogeneity,' says Mary Slayton, Global Director for Consumer Insights for Nike. 'The Internet drives diversity.'" (10)

Implications tar medical institutions

The generations of Boomer, X, and Y are creating profound impacts on medicine already with more to come. Some will be obvious and others less so. We should remember that any individual member of one generation may not fit these stereotypes at all. But when we consider these generations as large groups, we can see effects that they create today or will cause tomorrow.

The Boomers

The most obvious impact of the Boomers on medicine is the force of their demographic weight. And now the Boomers are growing old. For the next 15 years or so a Boomer will turn 50 every eight seconds. Many thoughtful individuals are already alarmed at the serious implications of the graying of this generation. Medical ethicist Daniel Callahan argues that nothing less than a total reworking of our country's legal, moral, and ethical attitudes toward medical care of the aging will get us through the coming health care crisis as we face a demand for medical care that cannot be met at any cost. (11)

Boomers have a charitable streak, but self-sacrifice for the good of the group has never been a main theme in their thinking. More to the point is the Boomer attitude, We want it all--and we want it now!" Even if this means driving health care costs through the roof. (12) As the Boomers grow old, our society will not be able to afford coronary artery bypass surgery for every anginal heart or a transplant for every cirrhotic liver. The debate is heating up about the costs of using tamoxifen to prevent breast cancer in the millions of women who are at high risk. Expect to see many more such debates in the coming years.

The Boomers have, by and large, kept themselves in better physical shape and have lived a bit healthier lifestyle than earlier generations, but the hand of time is inexorable. Being fit can put off inevitable decline for a while, but that is all. No matter how much the Boomers would like to believe otherwise, just like everyone else they will all grow old, sicken, and die. Indeed, the healthier and more fit may very well live longer and die much more expensively. Much of the coining debate will focus on how costly this process is going to be and how much our society can afford to spend on the health care of seniors.

A less well-noted impact of the Baby Boomers has been their reluctance to belong to membership organizations. This has affected main-line Protestant churches, fraternal organizations, and organized medicine. In every case, the desire for personal independence has depleted membership as Boomers decide that they can do just as well on their own. Churches are waking up to the fact that the Boomers are not going to become members in numbers large enough to sustain their traditions. Some denominations are focusing most of their attention on Gen-Xers as the next generation to become church members in significant numbers. In essence, the Boomers are being bypassed.

This same sort of membership problem seems to apply to organized medicine. In many parts of the U.S., Boomer physicians are not joining or staying with their local, state, or national medical societies. The American Medical Association is particularly hard hit. (13) If generational analysis is correct, the leaders of organized medicine should take a lesson from the churches and start making whatever changes are necessary to capture the interest and allegiance of the Gen-Xers, instead of trying to bring the Boomers back into the fold. An institution can lose one generation to membership and survive, but survival is questionable if two generations in a row are lost as members. Many churches understand this--will organized medicine wake up in time?

Generation X

One important fact about Gen-X is there are far fewer of them. They are young. healthy adults at the moment, so their impact on medical marketing will impact OB/Gyn and pediatrics most strongly in the near term. These specialties (and family practice to a lesser degree) will be competing for a slice of a smaller pie for the next ten to 20 years. On the longer term, starting 30 years from now, the demand for medical services will drop from the high levels needed for the Boomers, who will be dying off. As Gen-X passes middle age, the number of elderly in our country will level off or even shrink.

Previous marketing practices that worked for the Boomers do not resonate with Gen-Xers. Much of medicine is still pretty uncomfortable with marketing, but medical marketing has become a widespread practice and will increase in importance. Targeting Generation X means learning a whole new way to attract patients. An ad in the paper or even the Yellow Pages may not be as effective as a spot on cable TV. Any message will need to appeal to their sensibilities, which are different--the Volkswagen TV ad with two guys picking up and dumping a stinky chair is pure Gen-X marketing. Making the transition to this type of thinking for marketing purposes may be very hard for a lot of medical leaders and their consultants, particularly if they are Boomers.

Approaching Gen-Xers as patients will be different as well. Futurist Jim Dator notes:
"More and more people are rejecting authority figures. They're choosing either to fall back on some form of fundamentalism or to believe only in themselves. So the standard gatekeepers of information and expertise- journalists, professors, doctors- are losing their authority. The Internet is the latest development in a do-it-your-self culture that abhors the expert." (14)
This patient attitude is showing up in the Boomers already, but it will be a much stronger trend in Generations X and Y.

Health care professionals are already being forced to learn new ways to talk to patients who come to the office with a handful of articles downloaded from the Internet. It is relatively easy for a patient to learn more about his or her single disease or condition than a generalist or even a specialist can keep in mind. The implications of this change are far-reaching, but should especially focus on how we train tomorrow's physicians in medical school and residency. Unfortunately, our medical faculty members have no experience or role models in this new way of doctoring. Developing new curricula for this purpose will be difficult.

As Gen-Xers become health care professionals, we will find that they bring a different set of priorities. Care of the sick will still be central, but the trappings of success or even its definition may change drastically. In our practice, we have noticed a change in the medical students who rotate through our office as part of their pediatrics clerkship. A much higher proportion are older (mid to late 30s) and are starting their second career. Many are women who started out In computer science or electrical engineering. They have worked for the major companies writing source code and the like, and they made a very good living doing this.

But these successful young people found themselves wanting to do something more meaningful. When they go into practice they will bring a very different attitude to the workplace. Money will not be the most important thing, and they certainly won't be afraid of information technology the way so many Boomer physicians are.

All of this will impact recruitment and retention efforts by medical groups. "Work your butt off and make a lot of money" may not attract applicants as it once did. Family time and balance between work and play may mean more to Gen-X physicians than large incomes. This becomes doubly important as fully half of the Gen-X new physicians will be women--second career or first. Strong retirement programs may mean more than high income to people who are less sure that tomorrow will be good to them. Wise medical executives will start to gather understanding of the differences in leadership that this generation will require.

Generation Y

They really are not out of high school yet, but the Gen-Yers are Impacting American life, much as the Boomers did. Why not? They are 60 million strong and that is nearly 20 million more than Gen-X. Marketing to this generation will require very different assumptions. Internet communications and email make word-of-mouth advertising instantaneous and immensely powerful. Successfully commanding these new forms of communication is not as easy as many business people think. (15)

Medical organizations haven't adjusted to the demands that Gen-Y is going to make, but we can be sure that they will impact medicine in their own turn. More concerning is the question of how many Gen-Yers will even want to utilize medical services. Today children are disproportionately over-represented in the ranks of the medically uninsured and underserved in our country. A large segment of this generation is learning how to get along without routine medical care. We might assume that as they grow up. the GenYers will want what they could not have as children and become good health care consumers, but for many of them medicine may seem unfriendly, uncaring, or unnecessary. These lessons from childhood may be hard to change.

We are about ten years away from seeing the first Gen-Yers graduate from medical school and closer to 15 years away from having a large number of them entering practice after residency. What will the impact of this generation be? This is not yet clear. The immediate future of medicine is in the hands of Generation X, but we must not forget that Y will follow before not too long. Getting locked into serving the needs of any one generation to the exclusion of others is a mistake.

Conclusion

This article presents a way of thinking that may be new to many readers. Generational thinking can be a fun mental exercise or it can be an important tool. Each generation has its own experience and sets of assumptions, and these vary markedly from one generation to the next. The speed of communications today allows individuals to know what others are thinking much more rapidly than even a few years ago. Thus the pace of change from one generation to the next is accelerating. A pessimist might sigh that along with all the other issues medical executives have to worry about, here is one more. The optimist will see generational analysis as one more useful tool to help make the business of medicine work even better.

References

(1.) Naisbitt, J. Megatrends. New York, New York: Warner Books, 1982.
(2.) Popcorn, F. The Popcorn Report: Faith Popcorn on the Future of Your Company, Your World, Your Life. New York, New York: Harperbusiness, 1992.
(3.) Strauss, W. & Howe, N. Generations: The History of Americas Future. 1584 to 2089. William Morrow & Co., 1992
(4.) Brokow, T. The Greatest Generation. New York, New York: Random House, 1998.
(5.) Dychtwald, K & Flower, I. Age Wave. Tarcher, 1989.
(6.) Creedon, J. "God with a million races." Utne Reader. # 88, July/August 1998, pp. 42-48.
(7.) Coupland. D. Generation X: Tales for an Accelerated Culture. St. Martins Press. 1992.
(8.) Essex. A. "Matrix Mania." Entertainment Weekly. May 14, 1999. pp. 40-41.
(9.) Long, J. Generating Hope. A Strategy for Reaching the Postmodern Generation. InterVarsity Press, 1997.
(10.) Neuborne. E. & Kerwin, K. "Generation Y." Business Week, February 15, 1999, pp. 81-88.
(11.) Callahan, D. False Hopes: Why America's Quest for Perfect Health is a Recipe for Failure, Simon & Schuster, 1998.
(12.) Robertson, K. "Health rates skyrocket to meet boomers demands." The Sacramento Business Journal. May 21, 1999. pp. 1.

(13.) Tye, L. "AMA in danger of vanishing from the scene." The Boston Globe. May 10, 1999. pp. C7.
(14.) Olafson, K, "The end of authority." Fast Company # 19, November 1998. pp. 74.
(15.) Cramer, J. "Pseudo-net firms just don't get it." San Francisco Examiner, May 16, 1999, pp. B2.

RELATED ARTICLE: THE FIVE GENERATIONS

The various generations do not have exact boundaries; for example, different authors will list somewhat differing birth years for the Baby Boomers. Obviously, not all members of a generation have exactly the same attitude on any given issue. Generalizations about group attitudes and outlook will have many exceptions. Nevertheless, if we step back to sec the forest rather than the trees, certain overall trends and directions appear

G.I. GENERATION: born between 1901 and 1925

The generation that survived the Great Depression and fought World War II was indelibly marked by its heroic journey. Members of the G.I. Generation who are still alive are 74 or older. This group believes in civic virtue and upward mobility--the American Dream. Throughout their lives they tended to be joiners of churches, professional organizations, and clubs. While most would express support for rugged Individualism, the G.I. Generation lived for the camaraderie of group experience. The shapes of our major Institutions--civic, religious, fraternal, and professional--bear the mark of the G.I. Generation.

SILENT GENERATION: born between 1926 and 1945

Calling a group the Silent Generation sounds pejorative, but it need not be so. Most were too young to fight in World War II, but they were greatly influenced by the surge of patriotism and self-sacrifice of that struggle. The Silent Generation admired the G.I. Generation and had no wish to differentiate themselves. They may not have challenged the status quo, but they have been good caretakers of the institutions and the world they inherited. People born between 1926 and 1945 have lived in the better world left to them, and they worked to extend that environment rather than change it. The dominant motif for the Silent Generation is allegiance to proper principles such as law and order, patriotism, and faith.

BABY BOOMERS: born between 1945 and 1964

At 76 million strong, the Boomers have always been demographically powerful, so they are used to being the most important generation due to sheer numbers. At every stage of life, the Baby Boomers have been the dominant force in our society. As they age, this will prove even more true. (5) Instant gratification has always been Key: buy now, pay later. This generation does not fear taking on debt the way the G.I. and Silent Generations did. The Boomers can be very moralistic, but they do not accept authority statements or institutional principles regarding morals and ethics. They are not joiners, and they are not as likely to sacrifice personal pleasures for the good of a group. On a spiritual level, Boomers often mix and match religious traditions to suit themselves, rather than submit to the dogma and teachings of any single religion.

GENERATION X: born between 1965 and 1981

Generation X is also called the Thirteenth Generation. This is the "Baby Buster" generation. comprising about 41 million people--25 million less than the Boomers. They are wedged between two much larger birth cohorts and thus feel demographically overlooked. Gen-Xers feel that they will get less in a material sense than the preceding generations got. This changes their approach to materialism itself. Their journey is as residents of a new world that changes shape rapidly and continuously. Insecurity is a major theme in Gen-X consciousness. Their emphasis Is more on close friends and virtual families than on material success or traditional associations. Personal experience counts for everything with the Xers. Institutions are highly suspect--they lack authenticity or even reality.

GENERATION Y: born between 1982 and 2003

Generation Y is also called the Millennial Generation. This generation is just starting to graduate from high school. Demographically, they are not quite as big as the Baby Boomers, but at 60 million they are big enough. Gen-Y will have an enormous impact on business and infrastructure just as the Boomers did. Generation Y has grown up with computers, email, and instant communication in the same way that the Boomers grew up with the telephone and Gen-X grew up with television. They have no memory of a time when the technology did not exist.

Earl (Trey) R. Washburn, MD, FAAP, is an Administrative Physician at El Dorado Pediatric Medical Group, Inc., in Placerville, California. He can be reached by calling 530/626-1144 or via email at edpmg@inforum.net.
COPYRIGHT 2000 American College of Physician Executives
COPYRIGHT 2004 Gale Group
Earl R. Washburn "Are you ready for Generation X? - Changing World View - the five generations". Physician Executive. FindArticles.com. 17 Oct, 2009.
http://findarticles.com/p/articles/mi_m0843/is_1_26/ai_102340171/

Wednesday, October 15, 2008

Weiss Ressearch's Emergency Q&A Session

Dear Reader,
We have prepared this report for viewers of Weiss Research’s recent emergency Q&A session as a follow-up to the urgent questions asked by our readers.
(If you would like to review the video or share it with a friend, click here for the recording.
With events unfolding so quickly, we have organized this report in a way that helps get you to safety as quickly as possible. You can read the report from start to finish. Or if you click on the topics below, you can jump straight to our instructions and information on each.
1. How to Buy Treasury Bills or Equivalent
2. How to Use Your Treasury-Only Money Fund as a Bank
3. How to Set Up a Single, Safe Account  for Nearly All Your Savings and Checking
4. What To Do With Your 401k
5. How to Get Rid of Risky Stocks Despite What Your Broker May Say
6. What to Do About Your Not-So-Risky Stocks
7. More, Equally Urgent Information on Bear Markets
8. Want to Stick With Banks? Here Are the Risks
9. How To Find a Strong Bank
10. How Risky or Safe Is Your Insurance?
Plus, you can jump straight to our handy reference lists ...
11. Treasury-Only Money Market Funds
12. Weakest Banks and Thrifts in the U.S.
13. Strongest Banks and Thrifts in the U.S.
14. Weakest Life, Health and Annuity Insurers in the U.S.
15. Strongest Life, Health and Annuity Insurers in the U.S.
16. Select U.S. Brokers With Their Capital Multiples


Follow-Up Information and Instructions for

(Watch video)
by Martin D. Weiss, Ph.D., and Michael Larson
1. How to Buy Treasury Bills or Equivalent
Among all investments available in the world today, U.S. Treasury bills are the safest and most liquid place for your money. But please do not confuse Treasury bills with Treasury bonds:
  • Treasury bills are short term — under one year.
  • Treasury bonds are long term — up to 30 years.
The primary difference: The longer the maturity, the longer you have to wait for your money. If you don’t want to wait, you can sell your bonds (or “notes,” which are between one and 10 years) on the secondary market. But if inflation or other factors have driven down their market value, you will take a loss.
Three-month — or, more precisely, 13-week — Treasury bills don’t have that problem. The most you’ll have to wait is the three months and you can also cash them in at any time in-between. Any market fluctuations are infinitesimal and simply not an issue.
How do you buy Treasury bills? You can open an account directly with the U.S. Treasury Department, using your Social Security number or your business tax ID number via the Treasury Direct program.
But the most practical way to buy Treasury bills is through a money market fund that invests exclusively in short-term U.S. Treasury securities or equivalent. The Treasuries it buys enjoy the same guarantee from the U.S. government as Treasuries bought through any other venue.
Plus, the Treasury-only money fund gives you the additional advantage of immediate availability of your money. You can have your funds wired to your local bank overnight. Or you can even write checks against it, much as you’d write checks against any bank checking account.
Which fund? We use Capital Preservation Fund and the Weiss Treasury Only Money Market Fund. Or you can shop among the funds cited in our lists.
2. How to Use Your Treasury-Only Money Fund as a Bank
Traditional banking nowadays is not as easy as it appears.
To make sure all your money is insured, you may have to keep close tabs on multiple accounts. And even if you’re comfortably under the FDIC’s insurance limits, bank fees and charges can add up. Banks often charge for regular checking, low balances, writing too many checks, ATM withdrawals and bounced checks. And for businesses, they pay no interest on checking.
You can get better interest with CDs. But there, your liquidity — the access to your funds — is restricted by early withdrawal penalties: Federal law requires a minimum penalty of seven days’ interest for early withdrawal on any account classified as a time deposit, which includes CDs. And since the law doesn’t set a maximum penalty, banks are free to charge more, which they usually do. So it’s not unusual to see early withdrawal penalties of all your interest on 30-day CDs and up to six months’ interest on longer term CDs.
Our recommendation: Use your Treasury-only money market fund for most of your banking needs, including both savings and checking.
A Treasury-only money fund invests your money in short-term U.S. Treasury securities (plus other securities that are 100% backed by U.S. Treasuries). The fund uses a bank, but strictly as a custodian for the securities, and those accounts are completely segregated from the bank’s deposits or assets. Even if the custodian bank fails, your money invested in short-term Treasuries through the fund — and your access to that money — is not affected.
Here’s the key: The Treasury-only money fund provides you with check-writing privileges so that you can use the money fund as your personal or business checking account. Here are the advantages:
Advantage #1. Yield. Treasury-only money funds have generally yielded substantially more than the yield offered on the average personal checking account in the U.S.
The contrast for business is even greater: Since banks do not pay interest on business checking accounts, Treasury-only money funds invariably give you more yield. Plus, you can also take better advantage of the “float” — the
funds remaining in your account while checks written against them have not

yet cleared. And unlike bank checking accounts, you don’t have to worry if your balances are over a certain limit. The bigger your balances, the better.
Just remember: In times of acute crisis, when there is a rush to escape financial risk and buy Treasury bills, your yield could be very low. But low yield is the price you pay for maximum safety, and it’s worth every penny.
Advantage #2. Low Fees. When a bank quotes you yields — on any kind of account — it always quotes you the yields before deducting all its various service fees. And with bank charges and fees currently at high levels, it’s almost impossible for most bank customers to collect anything near the advertised yield.
In contrast, when a Treasury-only money fund (or any money fund, for that matter) quotes you its yield, it is invariably after deducting its fees and expenses. Of course, the past or current yield is no guarantee of future results. But the yield quoted is the net yield that investors in the fund are actually earning.
How much of a difference can this make? In most cases, a significant one. Indeed, we figure that, after deducting myriad bank fees, most Americans today are getting a net yield of close to zero on their accounts, while many wind up losing money.
Advantage #3. One Account for Both Checking and Savings. At banks, most customers find they need to divide their money between (a) a checking account, where they give up most of their yield, and (b) a savings account or CD, where they give up immediate access and liquidity. No matter what, it’s almost impossible to get both optimal liquidity and the better yield in the same bank account.
In contrast, Treasury-only money funds let you keep nearly all of your cash assets — whether for savings or for checking — in one single account. This means that whether you’re investing $1,000 or $1 million,
  • You have complete access to all your funds at all times.
  • You can withdraw the entire amount, with no penalty whatsoever. Just write a check or request a wire transfer, and it’s done.
  • Your money consistently earns competitive, current market yields.
  • You never have to worry about leaving too much in your checking account at low or zero yield. The full amount is available for checking at all times, earning full interest.
  • You continue earning interest on your money up until the moment your check clears. The longer it takes for your payees to cash their checks, the more interest you earn.
Advantage #4. No Limit to Your Account Size. When you use banks for your savings or checking, you have to go through a series of contortions to keep your money safe from failure:
  • In each CD, you have to make sure your initial investment is comfortably below the coverage limit. Otherwise, the accumulation of accrued interest could put your balance over the limit, and that portion would not be covered by the FDIC.
  • You may have to spread your CDs among various accounts.
  • With a large checking account, you would have to call your bank almost daily to make sure it’s not over the FDIC limit. Reason: If there are several big checks outstanding, your bank balance could be over the limit; and if the bank fails at that time, any excess amount in your account could be in jeopardy.
With Treasury-only money funds, insurance is a moot point. Your funds are invested strictly in securities that are guaranteed directly by the full faith and credit of the U.S. Treasury Department. And there is no limit on the Treasury’s guarantee of its obligations — whether you’re a beginning saver with just a few thousand or you’re a Bill Gates with billions.
Advantage #5. Exempt From Local and State Taxes. The income you earn on both Treasury-only money funds and bank accounts is subject to federal income taxes. So there’s no difference between bank deposits and Treasury-only money funds in that regard.
However, when it comes to local and state income taxes, there is a significant difference:
  • The dividends you earn on Treasury-only money funds are generally exempt from local and state income taxes. But ...
  • The income earned on bank accounts and CDs is not exempt from local and state income taxes.
Advantage #6. Truly Free Checking. Nearly all banks charge you — one way or another — for your checking privileges. They may charge you a fee for each check you write. They may charge you a flat monthly service fee. Or they may charge you a combination of both.
Sometimes banks say they’re giving you “free checking,” but require large minimum balances, paying little or no interest. No matter what, you’re paying for checking — and probably too much.
Most Treasury-only money funds do not charge you any extra fee for check-writing privileges. You can write as many checks as you want, as often as you want. When they say “free checking privileges,” they really mean it.
This is not true for all Treasury-only money funds, however. And some do levy certain charges for special services. That’s to be expected. But those fees are almost always lower than the charges at banks.
Advantage #7. Immediate Liquidity. As with any financial institution, there will be a holding period for the out-of-town checks you deposit to your account. But your money goes to work for you right away, generating interest income immediately. And if you deposit your money via wire transfer, you can avoid the holding period; your funds will be available immediately.
In short, except for the holding period, all of the funds received by your Treasury-only money fund are available to you all of the time. There are four ways you can withdraw your money from your Treasury-only money fund:
  • You can write a check against the balance in your account — to yourself or to another payee.
  • You can call or send a fax to your money fund’s shareholder services department, giving them instructions to issue a wire transfer. (Before the fund can accept your wire instructions, however, you will need to have a signed authorization on file. This can be done when you open your account.)
  • You can request a check be sent to you directly from the fund. You can also authorize telephone instructions for redemption by check when you open your account.
  • You can establish a systematic program to automatically send a set amount to you monthly, quarterly, semi-annually or annually.
One small, annoying disadvantage: Most money funds impose a minimum amount for each check, usually $50 or $100. So you may need a small local checking account for checks under their minimum.
3. How to Set Up a Single, Safe Account for Nearly All Your Savings and Checking
 Whether you are an active investor or not, whether you have a lot of money set aside or just small amounts, we recommend these steps:
Step 1. Decide what type of account you want to open. For your personal checking account, it could be established as an individual, joint, custodian, or trust. (In addition, you can also use your Treasury-only money fund to open a separate account for your IRA or other retirement accounts.)
Step 2. Select a Treasury-only money market fund.
Step 3. On its website, or while you’re on the phone with its customer service department, get answers to a few questions about the costs associated with check-writing privileges:
  • “How many checks will you provide for me at no charge?” For personal accounts, at least the first 20 or 25 checks should be free. If you want additional checks, it’s reasonable to expect a printing charge, but it should be minimal.
  • “Will you charge me a per-check transaction fee?” If the answer is yes and you anticipate a relatively active account, don’t do business with this fund.
  • “What is the minimum dollar amount for which I can make out each of my checks?” It should be no more than $100.
  • “What is the minimum balance that I must maintain in my account, and will you penalize me if my balance falls below the minimum?” If the minimum is too high for you or if there is a penalty, look elsewhere.
  • “Do you accept deposits of second-party checks?” If the answer is no, this may not be the right fund for this plan.
Step 4. Download the prospectus and application from the fund’s website. Then read them carefully before investing. Or you can also ask the fund to send the materials via first-class mail.
Step 5. If you are not sure about what forms and documents you will need to submit to open an account, now is the time to ask. Some typical types of accounts, along with the documentation needed, are:
Type 1. Individual or joint account, minor custodian account: You’ll need the application and the signature card (indicate the number of signatures that will be required to cash a check).
Joint accounts, unless you specify otherwise, will probably be opened as joint tenants with rights of survivorship (JTWROS), meaning that the entire account balance will pass to the survivor in case one of the joint owners dies.
If you want the account to be registered as joint tenants in common (JTIC), be sure to specify that in writing when you open the account. JTIC means that each person owns a set percentage of the account; and if one person dies, his or her percentage does not automatically go to the survivor, but goes into the deceased’s estate to be distributed.
If you wish a custodian account for a minor child (UGMA), don’t forget to use the child’s Social Security number for correct IRS reporting.
Type 2. Trust or guardianship: You will need the application and the signature card (indicate the number of signatures needed to cash a check). Plus, you will need certified copies of the appropriate trust documents or court papers appointing a guardian and any power of attorney forms, if applicable. Hint: Put the trustee name(s) first on the account registration to reduce the paperwork that would be needed whenever an account transaction is requested. Example: Jane S. Doe, TTEE Doe Family Trust.
Type 3. IRA, Roth IRA, or other retirement account or rollover: Ask for the IRA or retirement plan application and agreement. This information should
include a new account application, a transfer authorization and a rollover certification form.
If you’re opening a new retirement account, fill out the new account application only.
If you’re transferring a retirement account directly between custodians, fill out both the application and the transfer authorization. Also be sure to include a copy of the most recent statement from your current custodian.
If it’s an IRA rollover and you have a distribution from a retirement account that you are going to transfer to the Treasury-only money fund, fill out both the new account application and the rollover certification form. (Important: Due to IRS regulations, check writing is not possible on IRA accounts.)
Step 6. With the above documents, also provide the basic wiring instructions to the fund. If there is no space on the application, put the following information in a separate, signed letter:
  • Your bank’s name, city and state
  • Your bank’s “ABA” number
  • Your bank’s wire transfer account number
  • Your account number at the bank
  • All registered names on the account
Note: The account title on your bank account should be the same as the title on your Treasury-only money fund account.
Step 7. Don’t forget to sign the application. Then make your first deposit check payable to the Treasury-only money fund and mail it with your new account materials. You should receive written confirmation of your deposit in the mail within a few days and a checkbook within about two weeks.
Step 8. Keep only a minimal amount in your local bank for petty cash and small, occasional checks.
Step 9. Use a major credit card for as many of your purchases as possible. Then, in order to avoid any interest charges, pay off your credit card, in full,
each month with one check written from your Treasury-only money fund.
Step 10. To maximize your total safety and liquidity, transfer the bulk of your cash funds to the Treasury-only money fund account. These can include any investment funds you wish to keep liquid and available for upcoming opportunities, as well as most of your regular spending money and most of your keep-safe savings.
Step 11. Write all of your checks that are above the fund’s per-check minimum from the Treasury-only money fund account. These could include
checks for paying your mortgage, rent, monthly credit card bills, utility bills and any large purchases at establishments that give you a better price for non-credit card purchases.

Step 12. If you need a large amount of cash or want to buy traveler’s checks, just call your Treasury-only money fund and give them instructions to transfer the money to your local bank. In most cases, if you call before 3 PM Eastern Time, you should have the funds in your account the next business day.
Step 13. At most funds, you may deposit your salary and any checks payable to you directly into your account. Just endorse the checks with your signature on the reverse side and include the words “for deposit to,” followed by your account number at the fund. Then simply mail your deposit to the fund. (You may use the deposit slip and envelope that most funds provide you with your monthly statement.)
As always, do not send cash in the mail. If you have cash deposits, make them at your local bank and then send the funds to your Treasury-only money fund via either a check or wire transfer.
If you want to know if your check has cleared your fund and you don’t want to wait for the written confirmation in the mail, just call the fund’s shareholder services at its toll-free number.
You will receive monthly statements from the fund showing all your checking transactions, plus any other activity including deposits, dividend income credits, etc. (Note: Canceled checks are not usually returned to you automatically, unless you specifically ask for them.)
That’s it! With these steps, you will now have superior safety overall, significantly greater effective yields, greatly reduced bank charges and maximum liquidity.
4. What To Do With Your 401k
Many people confuse two separate questions:
  • The first and most urgent question is: What investments do you own?
  • The second question is: What the kind of account are you using to buy those investments?
Let’s begin with the investments: With the exception of certain kinds of accounts guaranteed by insurers or others, if your investments are going down in value, you risk losing money regardless of what kind of account you have them in.
And based just on what we’ve seen so far, depending on what investment choices you made, your retirement could be cut half — or worse. Therefore, we disagree with those who recommend you hold the stock mutual funds in your 401k and just keep buying more on the way down. You cannot afford that risk. Instead, follow these steps ...
Step 1. Get from your employer or 401k manager the list of options available in your 401k.
Step 2. Pick out the safest one, as follows:
  • First choice: Treasury-only money market fund. (Unfortunately, these are rarely offered in 401ks.)
  • Second choice: A government-only money market fund, if your 401k has one. If not ...
  • Third choice: A standard money market fund.
  • Fourth choice: An income or bond fund that invests exclusively in U.S. government notes and bonds and nothing in corporate bonds.
  • Fifth choice: An income or bond fund that invests mostly in U.S. government notes and bonds and as little as possible in corporate bonds.
In sum, favor government paper over corporate or bank paper, and favor short term over long term.
Step 3. Shift all of your money to the safest fund. If you’re concerned the market has just plunged and you are selling at the wrong time, shift 50% immediately and the balance when the stock market enjoys a rally.
This is not a permanent solution. Later, when the dust has settled and the coast is clear, you can start shifting back to equities. But at this point, no one knows where the bottom in the market might be. So it’s better to be safe than sorry.
Step 4. Unless you may be short of cash, continue adding to your 401k normally. Just make sure all new funds are invested in the safest choice you selected in Step 2. In this way, you can continue to take advantage of your company’s matching program and your money can continue to grow without the drag of taxes.
Follow the same general approach with IRAs, 529 savings plans and other tax-protected plans. These offer the additional advantage of allowing you to buy short-term Treasuries or a Treasury-only money market fund.
5. How to Get Rid of Risky Stocks
Despite What Your Broker May Say

If you haven’t done so already in response to our many earlier warnings, you’d better sell — or hedge against — your risky stocks now. If you don’t, be prepared to suffer far deeper losses.
One way is to ignore what everyone thinks or says, call your broker and issue one, four-letter instruction: “SELL.”
Sound too simple? Perhaps. But compared to sitting back passively and letting your retirement be destroyed by a long or deep bear market, it’s actually the lesser of the evils.
Worried that you may be selling at exactly the wrong time? Then, as with your 401k, sell half at the market, reducing your exposure to risk immediately. Next, wait for an intermediate rally to sell the balance.
But beware: No matter how much you seek to sell or when, most brokers will try to talk you out of it. They have a hidden agenda. They want to keep
you as a customer; and they know that, once customers sell their stocks, they often close their brokerage accounts.
With this in mind, many brokers have been trained with up to seven sales pitches designed to keep you in the market come hell or high water.
Broker Pitch #1: “Buy more.” Their argument goes something like this: “Your stock is now selling at bargain prices. So if you didn’t already own 100 shares, you’d probably be thinking about buying — not selling. Instead, why not double down and take advantage of dollar-cost averaging?”
The more likely result in a bear market: Every time your stock falls by another $1 per share, instead of losing just $100, you’ll be losing $200.
Broker Pitch #2: “Hold for a recovery!” They argue that the “market will inevitably recover,” that the “recovery is always bigger and better than any near-term decline,” and that you should therefore “always invest for the long term.”
The reality: Bear markets can last for many years. It could take still longer for the averages to recover to current levels. During all those years, your money is dead in the water. And don’t forget: If the company goes out of business, your stock will be worthless and will never recover.
Broker Pitch #3: “You can’t afford to take a loss.” If you insist on selling, brokers often come back with this approach: “Your losses are just on paper right now. So if you sell, all you’ll be doing is locking them in. You can’t afford to do that.”
What they don’t tell you is that there is no fundamental difference between a paper loss and a realized loss. Nor do they reveal that the Securities & Exchange Commission (SEC) requires brokers themselves to value the securities they hold in their own portfolio at the current market price — to recognize the losses as real whether they’ve sold the securities or not.
Broker Pitch #4: “You can’t afford to take a profit and pay the taxes.” If you’ve got a profit in a stock, they say: “All you’ll be doing is writing a fat check to Uncle Sam. You can’t afford to do that.”
The reality: Although it’s not shown on your brokerage statement, the true value of your portfolio is net of taxes. So whether you or your heirs pay those taxes now or in the future is mostly a difference of timing. And if our
next president approves legislation to raise capital gains taxes next year, it could actually cost you more. Besides, which would you prefer — paying some taxes on profits or paying no taxes on losses?
Broker Pitch #5: The “don’t be a fool” argument. “Stocks look very cheap now and we’re very close to rock bottom,” goes the script. “We may even be right at the bottom. If you sell now, three months from now, you’ll be kicking yourself. Don’t be a fool.”
The truth: Brokers don’t have the faintest idea where the bottom is. Nor does anyone at their firm. And they know darn well that stocks do not hit bottom just because they look cheap. Worse, for their own accounts, brokers and their affiliates have been — and are likely to continue — liquidating shares, often targeting precisely the same shares they pitch to their customers.
Broker Pitch #6: “The market is turning.” If the market enjoys an intermediate bounce, which it certainly will at some point soon, this pitch is invoked. “Look at this big rally!” they say. “Your shares are finally starting to come back. After waiting all this time, are you sure you want to run away now — just when things are starting to turn around in your favor?”
The truth: In a bear market, intermediate rallies actually give you the best opportunity to sell. Often, they’re stimulated by government efforts to bail out companies or stimulate the economy. If so, those can be even better selling opportunities.
Broker Pitch #7: The last ace-in-the hole in the broker’s arsenal of pitches is the patriotic approach. “Do you realize,” they’ll say, “what could happen if everyone does what you’re talking about doing? That’s when the market would really nosedive. But if you and millions of other investors would just have a bit more faith in our economy — in our country — then the market will recover and everyone will come out ahead.”
The truth: Locking up precious capital in sinking enterprises is not exactly good for our country. Better to safeguard the funds and reinvest them in better opportunities at a better time.
6. What to Do About Your Not-So-Risky Stocks
Not all stocks are created equal. In a prolonged bear market,
  • some fall more than the stock averages,
  • some fall less, and ...
  • a very small number of stocks can actually buck the trend, moving higher as the rest of the market falls.
If you have stocks that your money manager or broker insist are in the latter two categories, and he makes a strong case for holding them, then it may make sense to do so.
But even with these special situations, you still could be vulnerable to significant losses for four reasons:
  • Investors need cash and sell even the best stocks to raise funds ...
  • Investors suffer large losses in the rest of their portfolio and take profits in their best stocks to help offset the loss ...
  • Fear overcomes logic and investors throw out the baby with the bathwater, and/or ...
  • Deflation drives down the price of all assets, including the best stocks.
Each or all of these situations can drive down the value of your stocks, no matter how good the companies may be. Therefore, if you’ve decided to hold them, you will need a hedge — an investment that’s designed to go up when stocks go down.
There are four vehicles available for hedging your stock portfolio. Here they are, listed from least risky to most risky:
  • Buying inverse ETFs. This is recommended for most investors who decide to continue holding stocks in their portfolio despite a bear market.
  • Spending small amounts of money on put options. This is recommended for investors with some risk capital available.
  • Selling short individual stocks. Not recommended.
  • Selling short stock futures. Not recommended.
For detailed instructions on inverse ETFs and how to use them, our free report, How to Protect Your Stock Portfolio From the Spreading Credit Crunch, is currently available for your immediate download.
7. More, Equally Urgent Information on Bear Markets
For more free information on bear market strategies that’s equally urgent, refer to:
  • Bear Market Defense Forum Part 1 and Part II, 10-01-08. “The spreading financial crisis has us in the clutches of a tough bear market in stocks ... In the second part of this presentation, we discuss the Weiss Bear Strategy.”
  • Last Chance for the Truth, 9-28-08. “You cannot wait to see how long Wall Street’s celebration will last or how soon Washington’s plan will fail. You must take protective action now.”
  • Washington declares war on debt crisis! Urgent Q&A, 9-19-08. “Is this the signal to jump back into stocks? No. For stocks that are vulnerable to a credit crisis and an economic decline, this is a signal to SELL. And for those who are looking for a hedge or profit opportunity for the next big decline, this is an ideal opportunity to get started.”
  • Dow plunges 504! Here’s what’s next, 9-15-08. “You’ll soon hear the Wall Street pundits arguing that this is the ‘climactic capitulation’ that will end the decline. Don’t fall for it! In reality, the Dow is still not far from its all-time peaks, with a lot further to fall. Our forecast is unchanged: 7200 on the Dow.”
  • Unthinkable Truth; Undeniable Reality, 7-28-08. “They’d have you believe they can outlaw the cycle of boom and bust ... repeal the law of supply and demand ... even freeze the march of time. In the real world, of course, no government in history has ever been able to do anything of the kind, and they know it. Why? Because, behind the façade of their feel-good happy talk and beneath the thin veneer of their Pollyanna optimism, nearly every single one of our leaders — including Bernanke and Paulson, Democrats and Republicans — is really a gloom-and-doom pessimist in disguise.”
  • How to Prepare for the NEXT Panic, 7-07-08. “‘When another collapse is about to begin,’ Dad warned, ‘they’re not going to ring any bells. Few investors will see it coming, fewer still will take protective action, and almost everyone will get caught in the melee. Don’t let that happen to our subscribers!’ But today, the bells are finally ringing and doing so loudly.”
8. Want to Stick With Banks? Here Are the Risks
When a bank goes under, the FDIC steps in, finds a merger partner or takes it over. This can be a quick process. But sometimes it may not be. We see three possible situations:
Situation #1. You are a shareholder in a bank that’s failing. In this situation, you will probably lose all or most of your money whether the government tries to bail the bank out or it’s allowed to fail and is taken over by the FDIC.
Situation #2. You are an insured depositor. You’ve got savings or checking accounts with the bank and they are under the FDIC insurance limit. In normal times, even if your bank fails, your savings should be secure and available at any time.
However, in the event of a national bank holiday, even if your bank has not failed, you may be denied access to most or all of your funds for an unknown period of time. We hope that time period would be very short — just a few days. But it could be more, or it could happen more than once.
Situation #3. You have deposits with a bank that are over and beyond the FDIC insurance limits. Or you have bought bank bonds or bank debentures. In most bank failures, you will suffer losses. And even with so-called “too-big-to-fail” banks, you could suffer severe losses as well. Do not count on the government to cover uninsured deposits, bonds or other debts.
To reduce your risk, avoid bank stocks and bank debentures or bonds. Keep your deposits under the FDIC insurance limit. And put the bulk of your funds in short-term Treasury securities bought directly from the U.S. Treasury Department or through a Treasury-only money market fund.
And for double protection, if you must do business with a bank, always use a strong institution regardless of insurance protection or other guarantees.
9. How To Find a Strong Bank
Step 1. First, become familiar with this ratings scale:
A = excellent
B = good
C = fair
D = weak
E = very weak
+ = the upper third of each grade range
- = the lower third of each grade range

Step 2. Find your bank in our list of Weakest Banks and Thrifts in the U.S. or in our list of Strongest Banks and Thrifts in the U.S. For your convenience, they are listed in alphabetical order. Or you can use a search function on your screen (such as the F4 key in MS Internet Explorer or the “Find” function in Adobe Reader).
Step 3. If you cannot find your bank or thrift in one of our lists below ...
  • At the home page, in the menus in the upper right, you’ll see the item “PORTFOLIO & TOOLS.” Pull down that menu and select “Banks & Thrifts Screener.”
  • This will take you to a new page with the bank screener, and you’ll see a box on the left-hand side to fill in your bank information. To narrow the search, type in the state if you have it. Then, under Bank name, type in strictly the FIRST name of the bank with no spaces. (If you type in more than the first name, the program will probably not find your bank.)
  • A list of banks with their ratings should appear to the right of the data entry box.
Step 4.When you have your bank’s rating, follow these guidelines:
  • If your bank is rated B- or higher, it implies your bank’s relative safety is “good” or better.
  • If your bank is rated D+ or lower, it’s a red flag. Seriously consider moving your money elsewhere, while weighing the cost of any interest penalties. For uninsured deposits, the interest penalty is a small price to pay for safety. For insured deposits, it will depend on how much you value your peace of mind.
  • If your bank is rated C-, C or C+, it’s a yellow flag. Monitor the rating every three months or so to make sure it has not been downgraded below C- (to D+ or lower).
Step 5. If you’re shopping for a new bank, favor institutions with a rating of B+ or better. Refer to our list of the Strongest Banks and Thrifts in the U.S. Or ...
  • Under State, select your state,
  • Under Rating, select B,
  • To the right of the rating, select “or higher,
  • Then, on the list to the right, under “display,” set the number of banks to be listed to 100.
  • From the list displayed to the right, look for banks with a rating of B+ or better. You may see some that you know have a branch near your home or place of work. Or search for the bank at Google Maps.
10. How Risky or Safe Is Your Insurance?
The risk you take with an insurance policy depends on two things: The type of policy you have and the relative strength or weakness of the insurance company. So here are the steps to follow ...
Step 1. Determine which broad category of policy you have. Generally speaking, there are three:
  • Cash-value policy. These are the most affected by the failure of the insurer. They include fixed annuities and whole life, sometimes called universal life. Your funds go into the insurance company’s own balance sheet, and if their balance sheet goes down, your savings can go down with it.
  • Variable annuities or variable life. Your money does not become a part of the insurance company’s portfolio. Instead, it goes into separate accounts. Like in a 401k, your money is actually invested in mutual funds. And like the 401k, you should check which funds you currently have, check their menu of choices and switch to the safest ones.
  • Term insurance — life, health, auto, home, etc. Your risk is greatly reduced because you’re paying strictly for the insurance. Your savings are not tied up.
Step 2. Become familiar with the rating scale below:
A = excellent
B = good
C = fair
D = weak
E = very weak
+ = the upper third of each grade range
- = the lower third of each grade range

Step 3. Find your insurer in our list of Weakest Health, Life and Annuity Insurers in the U.S. or in our list of Strongest Health, Life and Annuity Insurers in the U.S. For your convenience, they are listed in alphabetical order. Or you can just use the search function on your screen.
Step 4. Our lists do not include property and casualty insurers. Nor do they include very small insurers or those that are rated “fair” (C+, C and C-). So if you cannot find your insurer in one of the lists below:
  • On the home page menus in the upper right, you’ll see an item called “PORTFOLIO & TOOLS.” Pull down that menu and select “Insurers and HMOs Screener.”
  • This will take you to a new page with the insurer screener, and you’ll see a box on the left-hand side to fill in the needed information.
  • Under Company Type, select ...
  • Life & Health — for life, health and annuity insurers
  • Property & Casualty — for auto, home or business insurance
  • HMOs — for Health Maintenance Organizations
  • Then, under Insurer name, type in strictly the FIRST name of the insurer with no spaces.
  • A list of insurers plus their ratings should appear to the right of the data entry box.
Step 5. When you have your insurance company’s rating, follow these guidelines:
  • If your insurer is rated B- or higher, it implies no further action is needed under normal circumstances.
  • If your insurer is rated D+ or lower, it’s a red flag. Unless you must have the coverage and your personal situation would disqualify you from an alternate policy, seriously consider canceling the policy and, if you still need the insurance, shifting to another company. In tax-protected plans, make sure your agent helps you make the transfer without tax consequences.
  • If your insurer is rated C-, C or C+, it’s a yellow flag. Monitor the rating periodically to make sure it has not been downgraded below C- (D+ or lower).
Important: No matter what kind of policy you have, seek to do business only with strong insurers. Reason: If your insurer fails and you have to switch to a new company, you may not be able to get a similar policy or, if your situation has changed, you may not qualify for the insurance.
Step 6. If you’re shopping for a new insurance company, favor those with a rating of B+ or better. Refer to the Strongest Life, Health and Annuity Insurers in the U.S. Or ...
  1. Return to Insurers and HMOs Screener

  2. Under Company Type, select:

    • Life & Health — for life, health and annuity insurers
    • Property & Casualty — for auto, home and business insurance
    • HMOs — for Health Maintenance Organizations

  3. Under Rating, select B

  4. To the right of the rating, select “or higher

  5. On the list to the right, under “display,” set the number of insurers to be listed to 100.

  6. From the list displayed to the right, look for insurers with a rating of B+ or better. Most insurers are licensed to do business in many states. So you are not restricted to insurers that are domiciled in your state.
Important: Beware of the many pitfalls in long-term care insurance. We have received a multitude of questions from readers on this topic. They ask: “Who will care for them in their golden years? How will they cover the cost? Is long-term care insurance really such a good deal as salespeople say it is? For the answers download our free special report, Weiss Research’s Step-by-Step Guide to Long-Term Care.
11. Treasury-Only Money Market Funds
Fund Name
Toll-Free No.
Web Address
ABN AMRO Treas MMF/Common Cl (800) 992-8151 http://www.astonasset.com/
AllianceBernstein Treasury Reserves (800) 251-0539 www.alliancebernstein.com
American Century Capital Presv Fund (800) 345-2021 www.americancentury.com
American Performance US Treas (800) 762-7085 www.apfunds.com
BB&T US Treas MMF/Trust Shrs (800) 228-1872 www.bbtfunds.com
BBH US Treasury MMF (800) 625-5759 www.bbh.com
BNY Hamilton Treas MF/Hamltn Classic (800) 426-9363 www.bnyhamiltonfunds.com
CitiFunds Premium US Treas Resvs (800) 846-5200 www.citibank.com
CitiFunds US Treasury Reserves (800) 846-5200 www.citibank.com
DWS US Treasury Money Fund (800) 621-1048 https://www.dws-scudder.com
Dreyfus 100% US Treasury MMF (888) 782-6620 www.dreyfus.com
Dreyfus US Treas Reserves/ Cl R (888) 782-6620 www.dreyfus.com
Evergreen Treasury MMF/Cl A (800) 343-2898 evergreeninvestments.com
Fidelity US Treasury MMF (800) 343-3548 www.fidelity.com
Fifth Third US Treas MMF (800) 282-5706 https://www.53.com
First Amer Treas Oblig/Cl D - Corpt (800) 677-FUND www.firstamericanfunds.com
Gabelli US Treasury MMF (800) 422-3554 www.gabelli.com
Capital One US Treasury MMF (800) 999-0426 www.capitalone.com
Huntington US Treas MMF/Trust (800) 253-0412 www.huntingtonfunds.com
JPMorgan 100% US Treas Sec. MMF (800) 480-4111 www.jpmorganfunds.com
Reserve Fund/US Treas Fund (800) 637-1700 www.reservefunds.com
RMK Select Treasury MMF (877) 757-7424 www.regions.com
Schwab US Treasury Money Fund (866) 232-9890 www.schwab.com
SEI Liquid Asset Tr/Treas Secs/Cl A (800) 342-5734 www.seic.com
Sentinel US Treasury MMF (800) 282-3863 www.sentinelfunds.com
T. Rowe Price US Treasury Money Fund (800) 541-6066 www.troweprice.com
US Treasury Money Fund of America (800) 421-0180 www.americanfunds.com
US Treasury Securities Cash Fund (800) 873-8637 www.usfunds.com
Vanguard Admiral Treasury MMF (800) 662-7447 www.vanguard.com
Vanguard Treasury MMF (800) 662-7447 www.vanguard.com
Weiss Treasury Only MMF (800) 242-8092 www.tommf.com
Wells Fargo 100% Treas MMF (800) 222-8222 www.wellsfargo.com
Wells Fargo Treas Plus MMF/Class A (800) 222-8222 www.wellsfargo.com
12. Weakest Banks and Thrifts in the U.S.
Distributed by: Weiss Research, Inc., www.MoneyandMarkets.com
Source of Financial Strength Ratings: TheStreet.com Ratings, www.TheStreet.com.
Data source: FDIC’s Call Reports and OTS’ Thrift Financial Reports, June 30, 2008.
Selection criteria for the table below: U.S. commercial banks, savings banks, S&Ls and other thrifts with total assets of $500 million or more and with a rating of D+ or lower.

Name City
State
TheStreet.com Rating
Total Assets ($Millions)
1st Centennial Bk Redlands
CA
E
$762
1st United Bk Boca Raton
FL
D
$563
Advantage Bk Cambridge
OH
D+
$1,026
Affinity Bk Ventura
CA
D-
$1,232
Alliance Bank Lake City
MN
D
$680
Alliance Bk Culver City
CA
E+
$1,119
Alliance Bk Corp Fairfax
VA
D
$569
Allstate Bk Vernon Hills
IL
D+
$923
Amboy Bank Old Bridge
NJ
D-
$2,642
Amcore Bk NA Rockford
IL
D-
$5,133
American Bk St Paul
MN
D
$630
American Bk Rockville
MD
D+
$505
American Bk North Nashwauk
MN
D+
$639
American Bk of Commerce Wolfforth
TX
D
$686
American Founders Bk Inc Frankfort
KY
D-
$509
American River Bk Sacramento
CA
D
$579
Americanwest Bk Spokane
WA
D-
$2,107
Ameriprise Bank, FSB New York
NY
D-
$1,443
Amtrust Bank Cleveland
OH
D-
$15,897
Anchor MSB Aberdeen
WA
D+
$629
Anchorbank FSB Madison
WI
D-
$4,813
Avidia Bank Hudson
MA
D
$953
Baltimore County Svgs Bk FSB Baltimore
MD
D+
$589
Banco Popular North America New York
NY
D
$12,871
Banco Santander PR San Juan
PR
D
$8,659
Bank of Blue Valley Overland Park
KS
D-
$790
Bank of Choice Evans
CO
D-
$563
Bank of Choice Colorado Arvada
CO
D-
$624
Bank of East Asia USA NA New York
NY
D-
$772
Bank of Florida-Southwest Naples
FL
D
$702
Bank of Granite Granite Falls
NC
D-
$1,158
Bank of the Cascades Bend
OR
D-
$2,441
BankAtlantic Fort Lauderdale
FL
D
$6,294
BankUnited FSB Coral Gables
FL
D-
$14,164
Baraboo NB Baraboo
WI
D-
$707
Barclays Bank Delaware Wilmington
DE
D
$7,670
Baylake Bk Sturgeon Bay
WI
D
$1,079
Beach Community Bk Fort Walton Bch
FL
D-
$692
BLC Bank, NA Strasburg
PA
D
$3,654
BPD Bk New York
NY
D
$656
Bradford Bank Baltimore
MD
D-
$518
Bridgeview Bk Group Bridgeview
IL
D+
$1,377
Broadway Bk Chicago
IL
D+
$1,154
Buckhead Community Bk Atlanta
GA
D-
$921
Builders Bk Chicago
IL
D-
$520
CapitalSouth Bank Birmingham
AL
E
$737
Carolina Bk Greensboro
NC
D+
$567
Central Co-Op Bk Somerville
MA
D+
$564
Central IL Bk Champaign
IL
D+
$501
Central Pacific Bk Honolulu
HI
D
$5,637
Century Bk FSB Sarasota
FL
D-
$920
Chevy Chase Bk FSB McLean
VA
D
$14,820
ChinaTrust Bk USA Torrance
CA
D+
$2,713
Citibank NA Las Vegas
NV
D+
$1,228,445
Citizens Bkg Co Sandusky
OH
D+
$1,105
Citizens Financial Bank Hammond
IN
D+
$1,102
Citizens First Svg BK Port Huron
MI
D-
$2,070
Cole Taylor Bk Chicago
IL
D
$3,709
College Svgs Bk Princeton
NJ
D-
$608
Colorado East B&T Lamar
CO
D+
$747
Columbia River Bk The Dalles
OR
D+
$1,108
Columbian B&TC Topeka
KS
F
$735
Community B&TC Sheboygan
WI
D+
$602
Community Bk Loganville
GA
E-
$628
Community Bk of Nevada Las Vegas
NV
D+
$1,636
Community Central BK Mt Clemens
MI
D-
$531
Community South Bk Parsons
TN
D+
$634
Community West Bk Goleta
CA
D
$648
Conestoga Bank Chester Springs
PA
D-
$728
Corus Bk NA Chicago
IL
D-
$8,984
Countrywide Bank, FSB Alexandria
VA
D-
$116,364
County Bk Merced
CA
E+
$2,059
Crescent B&TC Jasper
GA
D
$975
Crescent B&TC New Orleans
LA
D+
$574
Darby B&TC Vidalia
GA
D+
$784
Delaware County B&TC Lewis Center
OH
D+
$713
Desert Hills Bk Phoenix
AZ
D-
$517
Doral Bank Puerto Rico San Juan
PR
D-
$8,822
Downey S&LA FA Newport Beach
CA
D-
$12,630
East Boston Svg Bk Boston
MA
D+
$1,013
Eastern Svgs Bk FSB Hunt Valley
MD
D
$1,116
Equitable Bk SSB Wauwatosa
WI
D
$553
Eurobank San Juan
PR
D-
$2,829
Exchange Bk Santa Rosa
CA
D+
$1,679
Farmers & Merchants Bk Lakeland
GA
D-
$589
Federal Trust Bank Sanford
FL
E-
$637
Fidelity Bank Dearborn
MI
D-
$1,036
Fidelity Bk Norcross
GA
D+
$1,775
Fifth Third Bk Grand Rapids
MI
D+
$54,161
First American B&TC Vacherie
LA
D+
$687
First American Intl Bk Brooklyn
NY
D+
$558
First Bank of Beverly Hills Calabasas
CA
D+
$1,332
First Bk Creve Coeur
MO
D
$10,780
First Bk Fncl Centre Oconomowoc
WI
D
$587
First Central Svgs Bk Glen Cove
NY
E+
$655
First Community Bk Taos
NM
D+
$3,462
First Federal Bank Harrison
AR
D
$820
First Federal Bank of CA FSB Santa Monica
CA
D-
$7,179
First Georgia Banking Co Franklin
GA
D
$780
First Independent Bk Vancouver
WA
D
$958
First Mariner Bk Baltimore
MD
D-
$1,179
First NB of GA Carrollton
GA
D-
$906
First NB of Nevada Reno
NV
F
$3,411
First NB of the South Spartanburg
SC
D
$861
First Niagara Commercial Bk Lockport
NY
D
$685
First Place Bank Warren
OH
D+
$3,176
First Private B&T Encino
CA
D
$639
First St Bk Eastpointe
MI
D
$731
First St Bk Stockbridge
GA
D-
$680
First Tennessee Bk NA Memphis
TN
D+
$35,287
First United B&TC Durant
OK
D
$1,927
FirstBank Florida Miami
FL
D+
$895
Firstbank of PR San Juan
PR
D+
$17,841
Flagstar Bk FSB Troy
MI
D-
$14,559
Florida Bank Tampa
FL
D+
$553
Florida Capital Bank, NA Jacksonville
FL
D-
$879
Florida Community Bk Immokalee
FL
E+
$990
Founders Bk Worth
IL
D
$972
Franklin Bk SSB Houston
TX
D-
$5,572
Fremont Investment & Loan Brea
CA
E
$5,657
Gainesville Bank & Trust Gainesville
GA
D+
$690
Goldman Sachs Bk USA Salt Lake City
UT
D-
$25,727
Great FL Bk Miami
FL
D+
$1,791
Guaranty Bank Milwaukee
WI
D-
$1,749
Guaranty Bk Austin
TX
D+
$15,756
H&R Block Bank Kansas City
MO
D
$1,067
Habersham Bk Clarkesville
GA
D-
$502
Hampden Bank Springfield
MA
D+
$518
Hanmi Bk Los Angeles
CA
D
$3,839
Haven SB Hoboken
NJ
D+
$692
Haven Trust Bank Duluth
GA
D-
$558
Heartland Bk Clayton
MO
D
$893
Helm Bk Miami
FL
D+
$645
Highland Bk St Michael
MN
D
$503
Hillcrest Bk Overland Park
KS
D-
$1,888
Home FSB Rochester
MN
D+
$1,076
Home NB Blackwell
OK
D
$806
Home S&LC Youngstown
OH
D
$2,739
HSBC Bk USA NA Wilmington
DE
D+
$177,466
Huntington NB Columbus
OH
D+
$54,842
Illinois NB Springfield
IL
D-
$505
Imperial Capital Bk La Jolla
CA
D
$4,089
Independence Bk Owensboro
KY
D+
$702
Independent Bk Ionia
MI
D-
$3,232
Independent Bk Memphis
TN
D+
$643
IndyMac Bk FSB Pasadena
CA
E-
$30,534
Inland B&T Lake Zurich
IL
D-
$1,098
Integrity Bk Alpharetta
GA
F
$1,108
Inter Svgs Bk FSB Maple Grove
MN
D-
$895
International Bk of Miami NA Coral Gables
FL
D
$800
Intervest NB New York
NY
D-
$2,103
Irwin Union Bk Columbus
IN
D+
$5,285
Irwin Union Bk FSB Columbus
IN
D+
$692
K Bk Owings Mills
MD
D-
$657
LaSalle Bank Midwest NA Troy
MI
D+
$37,643
Leaders Bk Oak Brook
IL
D+
$588
Legacy Bk Hinton
OK
D+
$504
Lehman Brothers Bk FSB Wilmington
DE
D+
$10,577
LibertyBank Eugene
OR
D-
$947
Lincoln Bank Plainfield
IN
D+
$868
Los Padres Bk Solvang
CA
D+
$1,195
Lowell Five Cents SB Lowell
MA
D+
$659
Lydian Private Bank Palm Beach
FL
D+
$1,923
Macatawa Bk Holland
MI
D
$2,116
Magna Bank Brentwood
TN
D+
$534
Magyar Bank New Brunswick
NJ
D
$510
Marine Bk-Springfield Springfield
IL
D+
$623
Mercantil Commercebank, NA Miami
FL
D+
$6,036
Meridian Bank NA Wickenburg
AZ
D
$2,127
Merrick Bank Corp S Jordan
UT
D+
$1,202
Metropolitan NB Little Rock
AR
D
$1,746
Midcountry Bank Marion
IL
D-
$979
Mid-Missouri Bk Springfield
MO
D+
$705
MidWestOne Bk Oskaloosa
IA
D
$789
Millennium BCP Bank, NA Newark
NJ
D-
$836
Mountain 1st B&T Hendersonville
NC
D+
$685
Mutual Bk Harvey
IL
D-
$1,698
National City Bk Cleveland
OH
D
$151,165
Nevada Security Bk Reno
NV
D+
$632
New Frontier Bk Greeley
CO
D+
$2,035
New South FSB Irondale
AL
D
$1,962
Newbridge Bank Lexington
NC
D+
$2,012
Nexity Bk Birmingham
AL
D-
$1,095
Norstates Bank Waukegan
IL
D
$638
Northeast Bk Auburn
ME
D+
$596
Northside Cmnty Bk Gurnee
IL
D
$555
Northwest Georgia Bk Ringgold
GA
D+
$613
NOVA Savings Bk Berwyn
PA
D-
$520
Ocean Bk Miami
FL
E+
$4,848
Omni Bk Metairie
LA
D
$735
Omni NB Atlanta
GA
E
$1,030
OmniAmerican Bank Fort Worth
TX
D
$1,092
One United Bk Boston
MA
D+
$725
Orion Bk Naples
FL
D-
$2,889
Pacific Trust Bk Chula Vista
CA
D+
$825
Park Avenue Bk Valdosta
GA
D
$1,221
Park View FSB Cleveland
OH
D
$868
Peninsula Bk Englewood
FL
D-
$589
Peoples Community Bank W Chester
OH
D-
$764
Peoples First Community Bk Panama City
FL
D-
$1,840
PFF B&T Pomona
CA
E
$4,102
Preferred Bk Los Angeles
CA
D
$1,525
Premier Bk Jefferson City
MO
D-
$1,504
Premier Bk Medford
OR
D+
$1,487
Premier Bk-Maplewood Maplewood
MN
D-
$560
Presidential Bk FSB Bethesda
MD
D-
$556
Prosperity Bk St Augustine
FL
D+
$1,027
Redding Bk of Commerce Redding
CA
D-
$642
Reliance Bk Des Peres
MO
D+
$1,266
Republic Federal Bank, NA Miami
FL
D-
$590
R-G Premier Bk of PR San Juan
PR
D-
$7,189
Riverbank MN Wyoming
MN
D-
$500
Riverside Bk of Gulf Coast Cape Coral
FL
E+
$621
Royal Bk America Narberth
PA
D
$1,064
Saehan Bk Los Angeles
CA
D+
$888
Scotiabank DE PR Hato Rey
PR
D-
$1,603
Seacoast NB Stuart
FL
D-
$2,295
Seattle SB Seattle
WA
D+
$655
Security Bank of Bibb County Macon
GA
D-
$1,359
Security Pacific Bk Los Angeles
CA
E-
$588
Security Svgs Bk FSB Olathe
KS
D+
$693
Signature Bk of Arkansas Fayetteville
AR
D
$615
Silver St Bk Henderson
NV
F
$1,957
Silverton Bank, NA Atlanta
GA
D
$2,905
Southwest Bk Fort Worth
TX
D+
$561
Sovereign Bk NA Dallas
TX
D+
$674
St. Louis Bank Town And Country
MO
D+
$527
Sterling B&T FSB Southfield
MI
D-
$672
Sterling Savings Bank Spokane
WA
D
$12,216
Strategic Cap Bk Champaign
IL
D-
$676
Sun American Bk Boca Raton
FL
D-
$649
Superior Bank Birmingham
AL
D-
$2,835
Teambank NA Paola
KS
D+
$682
Temecula Valley Bk Temecula
CA
D
$1,462
TIB Bank Naples
FL
D
$1,490
TierOne Bk Lincoln
NE
D
$3,227
TotalBank Miami
FL
D+
$1,907
Tower B&TC Fort Wayne
IN
D+
$691
Truman Bk St Louis
MO
D-
$517
Umpqua Bk Roseburg
OR
D+
$8,343
Union Bk Kansas City
MO
D+
$635
United Security Bank Fresno
CA
D-
$770
Valley Bk Moline
IL
D+
$696
Vantus Bk Sioux City
IA
D+
$565
Venture Bk Lacey
WA
D
$1,224
Vineyard Bk, NA Rancho Cucam.
CA
E+
$2,336
Vision Bk Panama City
FL
D
$938
Wachovia Mortgage, FSB N Las Vegas
NV
D+
$76,795
Warren Bk Warren
MI
E+
$622
Washington Mutual Bank Henderson
NV
D+
$299,417
Waterstone Bank Wauwatosa
WI
D
$1,838
West Coast Bk Lake Oswego
OR
D-
$2,618
Westernbank Puerto Rico Mayaguez
PR
D-
$17,082
13. Strongest Banks and Thrifts in the U.S.
Distributed by: Weiss Research, Inc., www.MoneyandMarkets.com.
Source of Financial Strength Ratings: TheStreet.com Ratings, www.TheStreet.com.
Data source: FDIC’s Call Reports and OTS’ Thrift Financial Reports, June 30, 2008.
Selection criteria for the table below: U.S. commercial banks, savings banks, S&Ls and other thrifts with total assets of $500 million or more and with a rating of B+ or higher.

Name City
State
TheStreet.com Rating
Total Assets ($Millions)
Advanta Bk Corp Draper
UT
A
$2,761
Albany B&TC NA Chicago
IL
A
$518
Alerus Financial NA Grand Forks
ND
B+
$738
American Bk of Texas Sherman
TX
A-
$1,076
American Bk TX NA Marble Falls
TX
B+
$674
American Heritage Bk Sapulpa
OK
A-
$617
American NB&TC Danville
VA
A
$790
American St Bk Lubbock
TX
A-
$2,076
Apple Bk For Svgs Manhasset
NY
B+
$7,761
BancFirst Oklahoma City
OK
A-
$3,823
BancorpSouth Bk Tupelo
MS
B+
$13,395
Bank of Clarke Cty Berryville
VA
B+
$512
Bank of Commerce Idaho Falls
ID
A+
$718
Bank of Hampton Roads Norfolk
VA
B+
$554
Bank of Marin Corte Madera
CA
B+
$953
Bank of Stockton Stockton
CA
A-
$1,775
Bank of the Ozarks Little Rock
AR
B+
$3,052
Bank of the Sierra Porterville
CA
A-
$1,305
Bank of the West El Paso
TX
A-
$716
Bank of Utah Ogden
UT
B+
$704
Bank of Washington Washington
MO
B+
$642
BankPlus Belzoni
MS
B+
$2,155
Beal Bk NV Las Vegas
NV
B+
$2,213
Bessemer TC Woodbridge Twp
NJ
A-
$615
Bessemer Trust Co NA New York
NY
A-
$608
Broadway NB San Antonio
TX
A
$1,770
Brookline Bank Brookline
MA
A-
$2,422
Burke & Herbert B&TC Alexandria
VA
A
$1,568
Cameron St Bk Lake Charles
LA
A-
$594
Centennial Bk Fountain Valley
CA
B+
$796
Centier Bank Whiting
IN
A-
$1,818
Central Bk Provo
UT
B+
$629
Central Valley Cmnty Bk Fresno
CA
B+
$522
Charter Bk Eau Claire Eau Claire
WI
B+
$500
Citizens 1st Bank Tyler
TX
A
$602
Citizens Bk Elizabethton
TN
A-
$629
Citizens Bk Philadelphia
MS
B+
$693
Citizens Bk Farmington
NM
B+
$535
Citizens NB of Meridian Meridian
MS
A-
$1,124
City NB Beverly Hills
CA
B+
$15,971
City NB of Florida Miami
FL
A+
$2,817
City NB of WV Charleston
WV
A-
$2,461
Columbia Bk Fair Lawn
NJ
B+
$4,411
Community Bk Pasadena
CA
B+
$2,302
Community BK of Tri-Cty Waldorf
MD
B+
$643
Conway NB Conway
SC
A-
$860
CorTrust Bk NA Mitchell
SD
B+
$532
Custodial Trust Co Princeton
NJ
A
$880
Deutsche Bk TC Americas New York
NY
B+
$46,071
Deutsche Bk Tr Co DE Wilmington
DE
A-
$715
Dime Svgs Bk of Williamsburg Brooklyn
NY
B+
$3,654
Eastern Bk Boston
MA
B+
$6,802
El Dorado Svgs Bk FSB Placerville
CA
A-
$1,587
Evangeline B&TC Ville Platte
LA
A-
$525
Farmers & Merch Bk Ctrl CA Lodi
CA
A-
$1,607
Farmers & Merchants Bk Long Beach
CA
A
$3,279
Farmers St Bk Marion
IA
A-
$534
Fidelity Bk Fuquay-Varina
NC
A-
$1,459
First B&T East Texas Diboll
TX
B+
$619
First Bk Troy
NC
B+
$2,625
First Citizens B&TC Columbia
SC
B+
$6,182
First Citizens NB Mason City
IA
A-
$833
First Community Bk NA Bluefield
VA
B+
$2,035
First Constitution Bk Cranbury
NJ
A-
$504
First Farmers & Merchants Bk Columbia
TN
B+
$876
First Federal Bk of FL Lake City
FL
A-
$636
First Financial Bank, NA Abilene
TX
B+
$1,016
First Financial Bk Terre Haute
IN
A
$2,229
First Financial Bk NA Hamilton
OH
B+
$3,448
First Hawaiian Bk Honolulu
HI
A-
$13,027
First Mid Illinois B&T NA Mattoon
IL
B+
$1,012
First NB Hot Springs
AR
A-
$728
First NB Paragould
AR
A-
$580
First NB Fort Pierre
SD
B+
$602
First NB Alaska Anchorage
AK
B+
$2,320
First NB of Long Island Glen Head
NY
A-
$1,175
First NB of Newtown Newtown
PA
A
$607
First NB of Palmerton Palmerton
PA
A-
$571
First NB of Pulaski Pulaski
TN
B+
$566
First NB of Shelby Shelby
NC
A
$947
First NB of TN Livingston
TN
A
$550
First PREMIER Bk Sioux Falls
SD
A
$871
First Security Bk Missoula
MT
A-
$847
First Source Bk S Bend
IN
B+
$4,457
First St Bk Central TX Austin
TX
B+
$1,005
Firstbank Southwest Amarillo
TX
B+
$660
FPC Financial FSB Madison
WI
B+
$1,729
Frost NB San Antonio
TX
A-
$13,797
Gate City Bk Fargo
ND
A-
$994
GE Capital Fncl Salt Lake City
UT
A-
$5,266
Glacier Bk Kalispell
MT
A-
$1,155
Glens Falls NB&TC Glens Falls
NY
B+
$1,396
Heritage Bk of Commerce San Jose
CA
B+
$1,486
High Point B&TC High Point
NC
A-
$791
Hills B&TC Hills
IA
B+
$1,706
Home Federal Bank Nampa
ID
B+
$687
Home Federal Bank of TN Knoxville
TN
B+
$1,797
Hudson Valley Bank, NA Stamford
CT
B+
$2,210
Idaho Independent Bk Coeur D'Alene
ID
B+
$595
International Bk/Cmmrce NA Brownsville
TX
B+
$794
Intrust Bk NA Wichita
KS
B+
$3,463
Jersey Shore St Bk Jersey Shore
PA
A-
$623
KleinBank Big Lake
MN
B+
$1,545
LA Jolla Bk FSB Rancho Santa Fe
CA
B+
$3,659
Lehman Brothers Comml Bank Salt Lake City
UT
B+
$6,418
Liberty Bk Middletown
CT
A-
$2,778
Luther Burbank Svgs Santa Rosa
CA
B+
$3,049
Manufacturers Bk Los Angeles
CA
B+
$2,073
Maspeth FS&LA Maspeth
NY
A
$1,353
Mechanics Bk Richmond
CA
B+
$2,656
Mizuho Corporate Bk Of CA Los Angeles
CA
B+
$558
Mizuho Corporate Bk USA New York
NY
B+
$3,035
Mountain West Bk Coeur D'Alene
ID
B+
$1,115
National B&TC of Sycamore Sycamore
IL
A-
$574
National Bk of Blacksburg Blacksburg
VA
A-
$891
National Exchange B&TC Fond Du Lac
WI
A
$1,053
Nationwide Bank Columbus
OH
A-
$1,506
Needham Bk Needham
MA
B+
$803
Newburyport Five Cnts SB Newburyport
MA
B+
$588
North American Svgs Bk FSB Grandview
MO
B+
$1,546
Northfield Bank Staten Island
NY
A-
$1,518
Old Second NB Aurora
IL
B+
$2,953
OptumHealth Bank, Inc. W Valley City
UT
A-
$771
Orrstown Bk Shippensburg
PA
B+
$937
Pacific Coast Bkr BK San Francisco
CA
B+
$504
Panhandle St Bk Sandpoint
ID
B+
$1,023
Parke Bk Sewell
NJ
B+
$528
Penn Security B&TC Scranton
PA
A-
$625
Peoples Bk of Biloxi Biloxi
MS
A-
$891
People's United Bank Bridgeport
CT
B+
$17,367
Piedmont FSB Winston-Salem
NC
B+
$834
Pinnacle Bk Lincoln
NE
B+
$2,211
Provident Bk Montebello
NY
B+
$2,682
Prudential Bank & Trust, FSB Hartford
CT
B+
$1,445
RCB Bk Claremore
OK
B+
$1,189
River City Bk Sacramento
CA
B+
$862
Roma Bank Robbinsville
NJ
B+
$923
Rosedale FS&LA Baltimore
MD
A+
$607
Savings Bk of Mendocino Cty Ukiah
CA
A-
$738
Security NB of Omaha Omaha
NE
B+
$574
Security NB of Sioux City IA Sioux City
IA
B+
$617
Silicon Valley Bk Santa Clara
CA
A
$6,673
Skagit St Bk Burlington
WA
A-
$568
Solvay Bk Solvay
NY
B+
$525
Somerset Svgs Bk, SLA Bound Brook
NJ
B+
$596
South Side T&SB Peoria
IL
A-
$518
Southern B&TC Mt Olive
NC
B+
$1,165
Starion Financial Bismarck
ND
B+
$576
State Bk of India (Calif) Los Angeles
CA
B+
$589
State Bk of Southern Utah Cedar City
UT
A-
$603
Stearns Bk NA St Cloud
MN
B+
$1,031
StellarOne Bank Christiansburg
VA
B+
$3,007
Sumitomo Tr & Bkg Co USA Hoboken
NJ
A+
$718
Talbot Bk of Easton MD Easton
MD
B+
$591
Time FSB Medford
WI
B+
$502
Torrington Svgs Bk Torrington
CT
B+
$725
Tri City NB Oak Creek
WI
A
$755
Tri Counties Bk Chico
CA
A-
$1,979
UMB Bank Colorado Denver
CO
B+
$845
UMB NB of America Salina
KS
B+
$591
Union B&TC Lincoln
NE
B+
$1,720
United Bk Zebulon
GA
B+
$646
Univest NB&TC Souderton
PA
A-
$1,995
Washington First Intl Bk Seattle
WA
B+
$638
Washington FS&LA Seattle
WA
A
$11,572
Waukesha St Bk Waukesha
WI
A
$687
Western Security Bank Billings
MT
A-
$567
Wilmington Svgs Fund Society Wilmington
DE
B+
$3,193
Wilshire St Bk Los Angeles
CA
B+
$2,356
Woodforest NB Houston
TX
A-
$2,687
World Financial Network NB Columbus
OH
A-
$1,029
Wright Express Fin Svcs Corp Salt Lake City
UT
A-
$1,493
Yakima FS&LA Yakima
WA
B+
$1,394
14. Weakest Life, Health and Annuity Insurers in the U.S.
Distributed by: Weiss Research, Inc., www.MoneyandMarkets.com.
Source of Financial Strength Ratings: TheStreet.com Ratings, www.TheStreet.com.
Data source: Statutory filings with state insurance commissioners, second quarter 2008.
Selection criteria for the table below: U.S. life and health insurers with total assets of $500 million or more and with a rating of D+ or lower.

Company State
TheStreet.com Financial Strength Rating
($) Total Assets
ACA Financial Guaranty Corp MD D-
642,377,000
Affirmative Ins Co IL D+
514,802,000
American Physicians Asr Corp MI D+
846,083,000
Arrowood Indemnity Co DE D
2,942,967,000
Axis Surplus Ins Co IL D
580,783,000
Bankers Life & Cas Co IL D+
10,770,393,000
Brickstreet Mutual Ins Co WV E+
1,479,174,000
Catastrophe Reins Co TX E+
1,262,290,000
Clearwater Ins Co DE D
1,298,296,000
Coast National Ins Co CA D+
545,402,000
Colonial Penn Life Ins Co PA D+
709,488,000
Conseco Health Ins Co AZ D+
2,392,440,000
Conseco Ins Co IL D+
1,133,932,000
Conseco Life Ins Co IN D+
4,266,844,000
Conseco Senior Health Ins Co PA D+
3,425,873,000
Dorinco Reinsurance Co MI D
1,750,983,000
Financial Guaranty Ins Co NY D
4,263,721,000
Finial Reins Co CT D
1,317,986,000
First State Ins Co CT E
981,690,000
Global Reins Corp Of America NY D-
584,308,000
Greenwich Ins Co DE D
863,114,000
Indiana Old National Ins Co VT D
1,999,448,000
Jefferson National Life Ins Co TX D-
1,614,881,000
Lifecare Assurance Co AZ D+
682,772,000
Lumbermens Mutual Cas Co IL E
1,595,570,000
Medical Liability Mutual Ins Co NY D+
5,008,299,000
Monarch Life Ins Co MA F
924,370,000
Partner Reinsurance Co Of The Us NY D+
3,326,868,000
Penn Treaty Network America Ins Co PA D+
1,037,633,000
Physicians Reciprocal Insurers NY E-
1,412,360,000
PMI Ins Co AZ D+
564,310,000
PMI Mortgage Ins Co AZ D
3,765,664,000
Presidential Life Ins Co NY D+
3,891,910,000
Princeton Ins Co NJ D+
1,034,679,000
Radian Guaranty Inc PA D
4,038,675,000
SCOR Global Life US Re Ins Co TX D+
1,996,976,000
SCOR Reinsurance Co NY D
1,427,621,000
Seabright Ins Co IL D+
695,986,000
TIG Ins Co CA D
2,176,928,000
Underwriters At Lloyds London IL E+
741,757,000
United Automobile Ins Co FL D-
540,645,000
Washington National Ins Co IL D+
2,376,426,000
Western United Life Asr Co WA F
789,315,000
Wilton Reassurance Life Co Of NY NY D-
1,217,650,000
XL Capital Asr Inc NY D
580,951,000
XL Ins America Inc DE D+
618,004,000
15. Strongest Life, Health and Annuity Insurers in the U.S.
Distributed by: Weiss Research, Inc., www.MoneyandMarkets.com.
Source of Financial Strength Ratings: TheStreet.com Ratings, www.TheStreet.com.
Data source: Statutory filings with state insurance commissioners, second quarter 2008.
Selection criteria for the table below: U.S. life and health insurers with total assets of $500 million or more and with a rating of B+ or higher.

Company
State
TheStreet.com Financial Strength Rating
($) Total Assets
Acacia Life Ins Co
DC
A-
1,632,297,000
Alfa Life Ins Corp
AL
A
1,122,859,000
Alfa Mutual Fire Ins Co
AL
A-
792,965,000
Alfa Mutual Ins Co
AL
A-
1,450,155,000
Allstate Ins Co
IL
A-
44,022,535,000
Allstate Life Ins Co
IL
A-
75,704,815,000
American Family Life Asr Co Of Colum
NE
B+
63,026,750,000
American Family Life Ins Co
WI
A+
3,922,736,000
American Fidelity Asr Co
OK
A+
3,282,597,000
American General Life Ins Co
TX
B+
36,618,728,000
American Health & Life Ins Co
TX
B+
1,711,478,000
American Income Life Ins Co
IN
A-
1,730,502,000
American Modern Home Ins Co
OH
B+
895,708,000
American National Ins Co
TX
B+
14,228,188,000
American National Property & Cas Co
MO
A-
1,186,077,000
American United Life Ins Co
IN
A-
13,653,720,000
Ameritas Life Ins Corp
NE
A-
6,200,251,000
Amica Life Ins Co
RI
A-
928,202,000
Anthem Blue Cross Life & Health Ins
CA
B+
1,933,280,000
Assurity Life Ins Co
NE
B+
2,182,113,000
Auto-Owners Ins Co
MI
A
9,445,988,000
Auto-Owners Life Ins Co
MI
A
2,073,873,000
AXA Corporate Solutions Life Reins
DE
A-
896,661,000
AXA Life & Annuity Co
CO
B+
550,385,000
Berkshire Life Ins Co Of America
MA
A
2,360,212,000
Bituminous Casualty Corp
IL
A-
762,010,000
Boston Mutual Life Ins Co
MA
B+
897,252,000
California State Auto Asn Inter-Ins
CA
A-
5,632,433,000
Canal Ins Co
SC
B+
1,245,243,000
Central Mutual Ins Co
OH
B+
1,229,300,000
Church Mutual Ins Co
WI
A
1,194,769,000
Cincinnati Ins Co
OH
A-
9,997,816,000
Columbus Life Ins Co
OH
B+
2,521,485,000
Commerce Ins Co
MA
B+
2,951,007,000
Cooperativa D Seguros Multiples D Pr
PR
A-
515,778,000
Cornhusker Casualty Co
NE
B+
772,947,000
Country Life Ins Co
IL
A+
7,371,917,000
Country Mutual Ins Co
IL
A
3,450,695,000
Cumis Ins Society Inc
IA
B+
1,346,943,000
Dairyland Ins Co
WI
A
1,246,729,000
Empire Fidelity Investments L I C
NY
A-
1,542,762,000
Erie Family Life Ins Co
PA
B+
1,560,126,000
Farm Bureau Life Ins Co
IA
B+
5,623,349,000
Farm Bureau Life Ins Co Of Michigan
MI
A-
1,705,973,000
Farm Bureau Mutual Ins Co
IA
A-
1,484,294,000
Farm Family Life Ins Co
NY
B+
1,012,581,000
Farmers Automobile Ins Asn
IL
B+
860,453,000
Federal Ins Co
IN
B+
29,772,626,000
Federated Life Ins Co
MN
A
944,589,000
Federated Mutual Ins Co
MN
B+
3,909,037,000
Fidelity Investments Life Ins Co
UT
A
15,309,502,000
Fidelity Life Assn A Legal Reserve
IL
B+
528,469,000
First Investors Life Ins Co
NY
A-
1,275,675,000
Foremost Ins Co
MI
A-
1,997,074,000
Fort Dearborn Life Ins Co
IL
A
2,264,437,000
Frankenmuth Mutual Ins Co
MI
A
959,680,000
Geico Indemnity Co
MD
A-
4,578,509,000
General Re Life Corp
CT
B+
2,645,988,000
Georgia Farm Bureau Mutual Ins Co
GA
A-
828,866,000
Gerber Life Ins Co
NY
A-
1,466,269,000
Government Employees Ins Co
MD
B+
12,630,060,000
Government Personnel Mutual L I C
TX
B+
788,971,000
Grange Mutual Cas Co
OH
A-
1,617,156,000
Great Northern Ins Co
IN
B+
1,491,886,000
Great West Casualty Co
NE
A-
1,545,657,000
Great-West Life & Annuity Ins Co
CO
B+
36,344,017,000
Guardian Life Ins Co Of America
NY
A
28,965,624,000
Hartford Fire Ins Co
CT
B+
25,588,058,000
Hartford Life & Annuity Ins Co
CT
B+
82,527,190,000
Hartford Underwriters Ins Co
CT
B+
1,579,478,000
Hastings Mutual Ins Co
MI
A+
611,227,000
Health Net Life Ins Co
CA
B+
798,765,000
Home-Owners Ins Co
MI
A
1,276,338,000
Illinois Mutual Life Ins Co
IL
A-
1,273,086,000
Interins Exch Of The Automobile Club
CA
A+
5,581,507,000
Jackson National Life Ins Co
MI
B+
73,607,090,000
John Hancock Life Ins Co
MA
A-
68,798,380,000
John Hancock Life Ins Co (USA)
MI
B+
121,384,552,000
John Hancock Life Ins Co Of NY
NY
A
7,064,601,000
John Hancock Variable Life Ins Co
MA
B+
14,560,345,000
Kentucky Farm Bureau Mutual Ins Co
KY
A
1,660,062,000
Liberty National Life Ins Co
AL
B+
5,116,696,000
Lincoln Benefit Life Co
NE
B+
3,120,866,000
Lincoln Heritage Life Ins Co
IL
B+
594,141,000
London Life Reinsurance Co
PA
B+
1,245,872,000
Massachusetts Mutual Life Ins Co
MA
A
119,963,256,000
Mercury Casualty Co
CA
A-
2,382,117,000
Mercury Ins Co
CA
A
1,516,421,000
Merit Life Ins Co
IN
B+
1,106,579,000
Merrimack Mutual Fire Ins Co
MA
A-
861,026,000
Metropolitan Life Ins Co
NY
B+
301,793,931,000
Metropolitan Property & Cas Ins Co
RI
B+
5,183,091,000
Midland National Life Ins Co
IA
A-
25,670,030,000
Minnesota Life Ins Co
MN
A-
22,925,431,000
MML Bay State Life Ins Co
CT
A-
4,555,221,000
Motorists Mutual Ins Co
OH
B+
1,213,330,000
MTL Ins Co
IL
B+
1,283,579,000
Mutual Ins Co Of AZ
AZ
B+
885,430,000
Mutual Of America Life Ins Co
NY
B+
12,424,461,000
Mutual Of Omaha Ins Co
NE
A-
4,538,156,000
National Benefit Life Ins Co
NY
A-
722,951,000
National Guardian Life Ins Co
WI
A-
1,514,956,000
National Integrity Life Ins Co
NY
B+
3,761,456,000
National Liability & Fire Ins Co
CT
A-
1,199,175,000
Nationwide Life Ins Co
OH
B+
93,104,603,000
Nationwide Life Ins Co Of America
PA
B+
6,056,557,000
Nationwide Mutual Fire Ins Co
OH
B+
4,310,256,000
New York Life Ins & Annuity Corp
DE
A
73,552,223,000
New York Life Ins Co
NY
A
123,446,502,000
New York Marine & General Ins Co
NY
A-
601,600,000
North Carolina Farm Bu Mutual Ins Co
NC
A-
1,592,026,000
Northwestern Mutual Life Ins Co
WI
A
158,298,015,000
Ohio National Life Asr Corp
OH
B+
2,703,697,000
Old Republic General Ins Corp
IL
A-
987,289,000
Old Republic Ins Co
PA
A-
2,380,335,000
Owners Ins Co
OH
A-
2,447,660,000
Pacific Life & Annuity Co
AZ
A-
2,419,040,000
Pacific Life Ins Co
NE
A
94,447,398,000
Pekin Life Ins Co
IL
B+
826,846,000
Penn Ins & Annuity Co
DE
B+
1,103,682,000
Penn Mutual Life Ins Co
PA
B+
10,339,561,000
Physicians Life Ins Co
NE
A-
1,302,749,000
Physicians Mutual Ins Co
NE
A+
1,406,088,000
Primerica Life Ins Co
MA
A-
6,140,884,000
Principal Life Ins Co
IA
A-
132,593,698,000
Protective Ins Co
IN
A+
603,960,000
Radian Asset Asr Co
NY
B+
2,504,183,000
Reliable Life Ins Co
MO
A-
739,976,000
Reliastar Life Ins Co
MN
B+
21,955,348,000
Riversource Life Ins Co Of NY
NY
B+
4,839,180,000
Safety Ins Co
MA
B+
1,223,114,000
Savings Bank Life Ins Co Of Ma
MA
A-
2,088,888,000
Sentry Ins A Mutual Co
WI
A
5,609,638,000
Sentry Life Ins Co
WI
A
3,214,258,000
Shelter Life Ins Co
MO
A-
924,554,000
Southern Farm Bureau Cas Ins Co
MS
A-
2,748,224,000
Southern Farm Bureau Life Ins Co
MS
A
9,974,133,000
Standard Life & Accident Ins Co
OK
A-
526,172,000
State Auto Property & Casualty Ins
IA
B+
1,741,576,000
State Farm Life & Accident Asr Co
IL
A+
1,575,818,000
State Farm Life Ins Co
IL
A+
43,585,179,000
State Farm Mutual Automobile Ins Co
IL
B+
103,031,215,000
State Volunteer Mutual Ins Co
TN
B+
949,776,000
Teachers Ins & Annuity Asn Of Am
NY
A+
198,035,469,000
Tennessee Farmers Asr Co
TN
A
883,836,000
Tennessee Farmers Life Ins Co
TN
A
1,269,559,000
Tennessee Farmers Mutual Ins Co
TN
A-
1,902,758,000
Thrivent Life Ins Co
MN
B+
3,420,312,000
Tokio Marine & Nichido Fire Ins Ltd
NY
B+
1,701,782,000
Union Central Life Ins Co
OH
B+
6,971,059,000
United Farm Family Life Ins Co
IN
A
1,688,051,000
United Farm Family Mutual Ins Co
IN
A-
840,304,000
United Of Omaha Life Ins Co
NE
B+
13,174,566,000
United Services Automobile Asn
TX
A+
18,709,703,000
USAA Casualty Ins Co
TX
A+
6,182,472,000
USAA Life Ins Co
TX
A
11,408,616,000
Variable Annuity Life Ins Co
TX
A-
61,439,244,000
Wesco-Financial Ins Co
NE
B+
2,901,304,000
West Bend Mutual Ins Co
WI
A-
1,483,559,000
Western & Southern Life Ins Co
OH
B+
8,533,045,000
16. Select U.S. Brokers With Their Capital Multiples
Publisher: Weiss Research, Inc.
Data source: Securities and Exchange Commission (SEC) and most recent financial statements.
Selection criteria for the table below: Based on reader interest and other issues we deemed relevant to investors.
Definition of Capital Multiple: Total net capital divided by minimum capital requirement.

Important: Do not rely exclusively on this measure to evaluate the relative safety of your broker. When you have a choice, favor brokers with a higher capital multiple as an indicator of their ability to withstand losses or other financial difficulties.
Brokerage Firm
Capital Multiple
Edward Jones
19.90
Bank of New York Mellon (Pershing)
15.80
T. Rowe Price
13.98
Scottrade
13.86
OptionsXpress
12.65
Raymond James
11.92
Merrill Lynch
8.62
Fidelity
7.93
Bank of America Securities
5.97
ING Direct
5.85
Schwab
5.85
Lehman Brothers
5.43
E*Trade
5.00
TD Ameritrade
4.72
Citi Smith Barney
4.06
Goldman Sachs
3.90
Morgan Stanley
3.21