Dividends
Edited by Toddi Gutner
The Stat
4.9 years is the median job tenure for U.S. male workers age 25 or older, down from 5.9 years in 1983. For female workers in that age group, the figure has risen to 4.4 years, up from 4.2, in the same period.
Data: Employee Benefit Research Institute
RETIREMENT
The Enron Effect
Loosening the rules for 401(k)s
The Enron (ENRNQ
) debacle may have had one benefit: 48% of 151 companies surveyed by Buck Consultants said they were reviewing the 401(k) policies that require employees to own or hold on to company stock. Of those conducting a review, 71% said it was in response to Enron's bust. The review of their policies has produced the following results:
37% Increase education about company stock ownership
26% Modify the trading restriction on company stock
19% Eliminate trading restrictions on company stock
19% No changes expected
15% Don't know yet
12% Restrict share of account invested in company stock
Data: Buck Consultants
INSURANCE
Wonky Policies
Those who bought whole-life insurance policies a decade or so ago were probably told that they would have to pay premiums for about 10 years. After that, the policy should be earning dividends high enough to cover the annual premium. But falling interest rates have taken a toll on insurers' earnings, and many companies are cutting dividends.
Northwestern Mutual, for instance, cut its dividend rate from 8.6% to 8.2% this year. Guardian Life, Mass Mutual, and New York Life have also sliced their payouts. That means policy owners may have to keep making payments or start them anew if they've already stopped. "Some insurers are hitting people with up to nine extra years of payments," says Larry Paul, a financial planner in Rockville, Md.
You may be able to delay extra payments and apply the existing dividends toward the premium. The problem then is that there are fewer dividends left over to help build the policy's cash value. Still, that might buy you enough time until rates rise again.
By Pallavi Gogoi
FOOD
It's in the Bag
Bottled marinades are all the rage among chefs looking to liven up dinner on the grill. Now, cut prep and cleanup time with EZ Marinader, $2.99 from Heinz. The mesquite, teriyaki, or herb sauces come in a bag big enough to let you marinate as much as three pounds of meat. Wait 30 minutes and you're ready to cook -- and you can toss the rest of the mess away.
STUDENT LOANS
Low Rates Coming
If you're thinking about refinancing your student loans to lock in today's 3.46% interest rate, don't. On July 1, the rate on the federally guaranteed Stafford loan for students drops to 2.82% for those still in school and to 3.42% for graduates. The PLUS Loan for parents also falls -- to 4.22% from 4.86%. If you have two or more loans, you have from July 1, 2003, until June 30, 2004, to consolidate them and take advantage of these rates.
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