Squared Away Blog

Researchers have tried and failed to fully understand why so many people are unwilling to plunge into the stock market and ride the ups and downs of an investment that pays off over the long haul. A new study finally lands on something that has the power to affect how people invest: personality. In fact, personality is as good at explaining investment decisions as the sex, age, income, wealth, and education of individuals combined, said researchers at Northwestern, DePaul University, and the London School of Economics. They examined the Big 5 personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism. Openness and neuroticism have the most influence on stock investing – with opposite effects. On the other hand, agreeableness, characterized by…

Workers love flexible schedules. Employers, it seems, do not share their warm feelings. Employers said they’d be willing to pay substantially more – 20 percent to 60 percent more – to a worker who is willing to accept only a limited amount of scheduling flexibility or a rigid schedule, according to the preliminary findings of a new RAND study. This research is fairly unusual, because most of the studies of working arrangements have looked at employees’ preferences. And they show a clear preference for setting their own schedules or avoiding last-minute scheduling, an unpopular practice many retailers have adopted. In this study, David Powell and Jeffrey Wenger at RAND conducted an experiment to look at the flip side of t…

You’re over 50. You have built up a lot of equity in your home, and your life savings is finally gaining some critical mass. And yet, your odds of being rejected for a refinancing mortgage start going up rapidly after age 50 and really accelerate around 70, according to a study by Natee Amornsiripanitch at the Federal Reserve Bank of Philadelphia. This evidence, concludes a recent summary of the study, “is large and robust.” The research has important implications for older workers trying to prepare financially for retirement or retirees planning to change their living arrangements. Higher rejection rates can throw a wrench into refinancing an existing mortgage, cashing out some home equity, and possibly downsizing to a less expensive home. Yes, rejecting borrowers…

As workers age, poor health or disabling physical conditions can interfere with holding down a job. Sometimes people are forced to quit working if things get really rough, whether they’re ready to retire or not. But race also figures into this predicament, because workers of color are already in poorer health and tend to have more vulnerable employment situations than White workers. A new study compares what’s it’s like to be an older Black, Hispanic or Asian person who is trying to keep working in two countries with similar cultures: the United States and England. The United States does not come out on top. The building blocks for this research are basic comparisons of White and minority workers’ health and…

The remote work necessitated by COVID may be here to stay in five English-speaking countries from Australia to the United States. The countries in the study are: Australia, Canada, New Zealand, the United Kingdom, and the United States. The United Kingdom has the largest share of positions advertising remote work – 18 percent. The United States and Australia each have 12 percent. During the first two months of the pandemic, as businesses around the world shut down, remote work soared. That initial spike was followed by sustained growth throughout the pandemic. “It has become clear that this shift will endure long after the initial forcing event,” the researchers said. They identified fully or partially remote positions by working with a…

It’s been well documented that the COVID recession and layoffs in 2020 were particularly hard on Black, Hispanic, and Latino Americans. But if they had a disabling physical and medical condition, they felt it much more. In a new study examining the cumulative impact of having a disability combined with the disadvantages of being an older minority worker or retiree,  the racial disparities were apparent on a variety of fronts – in the inability to pay for essentials, at work, and through some difficulty obtaining medical care. Past research has shown that once the pandemic hit, people with disabilities, who tend to have lower incomes, had an even tougher time financially than in the years prior to COVID. The racia…

The types of long-term care located in various communities are largely driven by what their oldest residents can afford. This has created stark differences in what’s available to White and minority retirees, a new study finds. Assisted living facilities, despite the high cost, have been the fastest-growing part of the long-term care industry over the past 20 years. In the cities and suburbs, where the vast majority of Americans live, more of these facilities are located in predominantly White communities. Adult day care centers, at less than half the price of assisted living, have also expanded but are concentrated in communities of color. The research also revealed that bank redlining has contributed to the racial disparities. Historic discrimination in mortgag…

Do you know the main reason Americans slip into homelessness? Are you aware of the roots of this longstanding crisis? The best way to counter negative views of homelessness is to develop a better understanding of why it exists and who it affects. The Urban Institute has put together a quick quiz to explore an issue that people with secure jobs and comfortable housing don’t think much about – and might prefer not to think about. The federal government’s latest estimate of the homeless population makes clear that little progress has been made in reducing it, despite many communities’ efforts to address it. On a single night in January 2022, 582,462 people were homeless and either living on the streets or in homeless shelters…

COVID has moved from a central place in our lives to a risk that, while still important to heed, has moved out of the foreground. One thing we will not forget, however, is COVID’s toll on nursing homes and other long-term care facilities, where the virus has killed more than 200,000 older Americans and staff. The tragedy also played out in nursing homes in Canada, where the deaths received high-profile coverage in the news media, just as they did in this country. A survey of Canadians at the end of 2020, while COVID was still raging, indicates that the pandemic caused major changes in their thinking about old age. The reaction of a majority of people in their 50s and 60s to…

It’s not unusual for Black and Latino children to live with their grandparents, who are either the primary caregivers or members of a multigenerational family. And just as the grandparent is integral to the family unit, so are the Social Security benefits the grandparent receives and contributes to the household. The poverty rates in families with children would be much higher without the income from Social Security, according to new research on Wisconsin families. Nearly two-thirds of the study’s families in which a grandparent is a child’s primary caregiver rely on Social Security retirement benefits, disability benefits, or the Supplemental Security Income program (SSI), which makes small cash payments to low-income retirees and the disabled. Just under half of the three-generation households…

Here’s something you should know about Medicare Advantage plans: the vast majority of these insurance policies require prior approval before a person can receive some medical treatments and services. Historically, that was not the case, and prior authorizations are still very unusual for people who are enrolled in original Medicare and a Medigap supplement. But in the case of Medicare Advantage plans, physicians submitted more than 35 million requests for prior authorization to insurers in 2021, and more than 2 million of them – or about 6 percent – were fully or partially denied, according to the Kaiser Family Foundation’s new report on more than 500 Advantage plans. Only about 11 percent of the denials were appealed, but the vast majority of…

Nearly half of the people receiving federal disability benefits have a psychiatric impairment that interferes with working. And they tend to be younger and more willing to work than other disability beneficiaries. This makes them good candidates for employment support programs that encourage working at least part-time and might even prevent them from applying for benefits at all. According to a Mathematica review of research on three government jobs programs, the programs had some success in boosting participants’ employment and earnings. However, they didn’t prove effective over the long term in reducing their reliance on federal disability benefits. One federal program in Texas was geared to people with disabilities who had not applied for benefits when they entered the program. The program…