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Unformatted text preview: s take market risk. Fixed rate (conventional) mortgages were Lenders offer numerous mortgage products, used to finance homes, lender assumed many are risky and borrower assumes interest rate risk. Only qualified borrowers interest rate risk on adjustable rate were given loans. mortgages (ARMs). Lenders encouraged homeowners to borrow on their home equity. Lenders made loans to consumers who could not afford to repay, though standards are Consumers paid cash or used lay away plans. Consumers use credit cards, carry big tighter no
balances and pay high interest rates/fees. Employers provided and paid most of Health care costs are escalating, and employee health care costs. employers push more costs to the employee, or do not provide health insurance. 8 Major Trends: More Personal Responsibility for Your Future Emphasis on the
Emphasis Individual Taking
Responsibility for Their Financial
Future Why would this be the case? 9 Major Trends: U.S. Government Entitlement Programs
The government will not likely be able
The to afford to pay you the same benefits as
your parents Historic shift in government outlays to the
Historic retiring “baby boomers”
retiring Social security outflows Medicare outflows State and local government pension
failures Military pensions and medical care
10 Other Trends In Personal Finance Complex Tax Laws and Saving
401-K plans 529 college savings plans
529 A Growing Financial Services Industry Offering complex and risky products co...
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This document was uploaded on 02/12/2014.
- Spring '14