Even rich people can't afford college
Even affluent families are taking out student loans (Financial Advisor)
Federal subsidized student loans used to only be taken out by low-income families. Now the rising cost of tuition is causing more affluent families to take out loans. "As annual college costs often reach and exceed $30,000, even people who make good incomes can't put that much towards education every year," Megan McClean, the National Association of Student Financial Aid Administrators managing director of policy and federal relations, told Financial Advisor. The latest data available shows subsidized loans to upper-income-eligible families climbed to $1.15 million in 2011/2012, up from just $380,000 in 2007/2008.
Bill Gross is worried (Business Insider)
Readers of Bill Gross' monthly letters have become accustom to his dire warnings about the economy. His July note was no different. Gross suggested, "The BIS [Bank for International Settlements] emphatically avers that there are substantial medium term costs of 'persistent ultra-low interest rates.'" Gross expects the Fed to hike its benchmark interest rate in September.
Fidelity thinks Baby Boomers own too much stock (Business Insider)
The youngest of the baby boomers are nearing the time when they can withdraw from their 401(k) plans without penalty. Fidelity warns baby boomers as a whole own too much stock, and should cut down on their holdings to reduce exposure to a potential downturn in the market. According to Fidelity's report, "18% of people 50-54 had a stock allocation at least 10 percentage points or higher than recommended, and for people ages 55-59, that figure increased to 27%." Advisors say one way to determine what your exposure to equities should be is to subtract your age from 100 and that number should be the percentage of stocks in your portfolio.
A look at reverse mortgages (Financial Planning)
Reverse mortgages started as a way for a homeowner with no mortgage and few assets to take advantage of their home's value without having to move=. However, the product is becoming more popular with willing and able homeowners. Toby Dattolo, president of Heritage Mortgage Banking, told Financial Planning, "With its reduced fees and the new financial assessment, the HECM [Home Equity Conversion Mortgage] is now appealing to finance-savvy homeowners looking for additional tools to utilize in retirement planning."
Mercer hires four (Think Advisor)
Mercer announced the hiring of Chad Hueffmeier, Gina Hughes, Melissa Latore-Moore and Grace McAdam. Hueffmeier will serve as senior financial strategy consultant while Hughes joins as project manager and annuity placement specialist. Also, Latore-Moore signs on as an annuity placement specialist and McAdam will be a client advisor.