Financial News Story of the Day – U.S. Postal Service Could Shut Down
The U.S. Postal Service is in a world of trouble, losing $20 billion over the last 4 years and in need of a bailout. Despite a lower demand for mail services due to this new thing called email, postal service unions are strongly opposed to any layoffs. As of now, it doesn’t have the funds necessary to pay off retirees and current workers (source: CNNMoney.com).
Excerpt: “The bill would direct $1.7 billion of that overpayment to offer up to $25,000 cash buyouts or up to two years of service credits toward retirement for experienced employees near retirement. If 100,000 workers take the buyout, the move could save $8 billion, according to the U.S. Postal Service.”
Personal Finance Tip of the Day – How Big Should Your Emergency Fund Be?
EarlyRetirementExtreme.com had a great post today about just how large of an emergency fund you need, including breakdowns of needs vs. wants during actual emergencies. For those who don’t know it, the site is all about living life to the extreme in order to achieve an early retirement (source: EarlyRetirementExtreme.com).
Excerpt: “The size of the emergency fund thus depends exactly on how risky your personal system is. For instance, if you “need” $100k/year to live, and you live in an area, where $100k jobs are scarce, obviously your emergency fund must be larger than if the jobs you needed are less scarce.”
Daily Finance Summary – Markets Recover…Somewhat
The Dow bounced back by +178 points today as Fed Chief Ben Bernanke discussed a possible interest rate hike in 2013. MasterCard reported great results today and military officials sounded off about the perceived dangers to the country if a trillion dollar defense budget cut were allowed to pass.
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