Fixed mortgage rates fell for the eighth straight week in the widely watched Freddie Mac survey of what lenders are offering to well-qualified borrowers.

The 30-year fixed-rate mortgage averaged 4.49% this week, down from last week when it averaged 4.55%, Freddie Mac said.

The average balance of 401(k) retirement plan accounts managed by Fidelity Investments rose to $74,900 at the end of the first quarter, the highest level since the company began tracking balances in 1998.

When breaking the numbers down further, Fidelity found that workers who have saved continuously with the same employer for at least 10 years have amassed an average balance of $191,000. For the 10-year continuous contributor aged 55 or older, the average balance has reached $233,000.

Newport Beach, California, have some lifeguards with compensation packages that exceed $200,000 and where these “civil servants” can retire with lucrative government pensions at age 50.

These lifeguards can retire at age 50 with full medical benefits for life.  One recently retired lifeguard, age 51, receives a government retirement of over $108,000 per year—for the rest of his life.  He will make well over $3 million in retirement if he lives to age 80.  According to the City Manager, a new full-time guard costs less to hire than what is spent on this one retiree.  The city now spends more taxpayer dollars on retired lifeguards than it does on those who are working.

Make sure to read our annuity page.  Annuities can be a confusing topic.  We'll help you sort through the different types.  Most of our retired readers will want to focus on income annuities:

Income Annuities guarantee a specified amount of income each month in exchange for a lump sum payment.  These payments begin immediately and last until death or for some set period of time, typically between 5 and 25 years.

The insurance company pools this money from all the contract holders and pays out each month depending on your age, sex and current interest rates.  The older you are, the bigger the monthly payout. You will get a larger income stream because of shorter life expectancy.  

Your IRA or 401k money can be used to purchase these annuities.  This money which has come from a "qualified" plan will be subject to ordinary income tax as it pays out.  Payments from immediate annuities can be used to cover recurring expenses-such as mortgage payments or long term care insurance premiums or simply to supplement income.

RetirementThink Annuity Information

Starting May 1, everyone who applies for Social Security or other federal government benefits will be required to arrange for direct deposit of their payments. The government plans to phase out paper checks entirely by 2013.

Most Americans now expect to retire at age 65 or later. Over a third (37 percent) of workers plan to retire after age 65, up from just 15 percent in 1995.  Retirement at exactly age 65 also remains a popular choice. A quarter of employees plan to retire at age 65, down only slightly from 29 percent in 1995.

Early retirement is no longer a goal for most workers. The proportion of employees aiming to retire before age 65 has steadily declined from half of workers in 1995 to about a quarter (28 percent) in 2011. Just 5 percent of workers are striving to retire before age 55, down from 15 percent in 1995.

Source USNEWS.com

 According to the World Bank, the global price of food has risen 36% over the past 12 months



Regulators on Friday shut down a total of six banks in Alabama, Georgia, Minnesota and Mississippi, boosting the number of U.S. bank failures this year to 34. There were 157 bank closures in 2010 amid the shattered economy and piles of bad loans.

Many people who retired in 2000 thought they were in great shape: Over the previous 20 years, stocks returned 17.8% on average. Then two ferocious bear markets came rushing in.

"Our research shows that retirees who take a 'set it and forget it' approach do so at their own peril when hit by a bear market," says Christine Fahlund, a senior financial planner with T. Rowe Price. With T. Rowe's model, people who retired in 2000 with comfortable odds of not outliving their money had poor ones by March 2009.

The study assumed hypothetical investors who retired on Jan. 1, 2000, with a $500,000 portfolio invested 55% in the S&P 500 and 45% in the Barclays Capital U.S. Aggregate index for bonds. They took monthly withdrawals adding up to 4% of all assets ($20,000) the first year, and gave themselves a yearly 3% inflation adjustment. With normal expectations, in 2000, these investors had an 89% chance of sustaining the plan over 30 years.

Less than three years later, by the end of the bear market in September 2002, those odds had fallen to just 46%. The figure went up after the five-year bull but fell to only 6% after the next bear.

So what would have been the best strategy over the decade? Temporarily reducing withdrawals by 25% for three years after each bear market bottom.

Many retirees can't cut their budget by 25%. But it's better to adjust than simply count on the next bull. "The rule of thumb is to take whatever steps you can to reduce withdrawals or hold them steady until the market rebounds," Fahlund says.

The spot price of gold, which reflects trading in bullion, rose to an all-time high of $1,461.91 an ounce, up more than $5 from Tuesday’s peak. In futures trading, U.S. gold for June delivery rose half a percent to a record high of $1,467.00 an ounce.

Silver, the poorer investor’s alternative to gold, hit 31-year highs of $39.75 an ounce in spot trading.

If you turned 70 1/2 last year (2010) and did not take the mandatory withdrawal from your IRA or 401k plan...  Call your custodian and have them process by April 1st!