The FFS Blog http://ffscambridge.com Updates, Notes, and Thoughts on Financial Planning - Fisher Financial Strategies, Cambridge, MA en tom@ffscambridge.com Copyright 2013 2013-06-08T17:00:00+00:00 42.362297-71.084129http://creativecommons.org/licenses/by-nc-nd/3.0/http://creativecommons.org/licenses/by-nc-nd/3.0/http://creativecommons.org/images/public/somerights20.gifSome Rights Reserved Trustees Issue 2013 Report - Will Social Security Funds Dry Up Sooner Than Expected? http://feedproxy.google.com/~r/FfsBlog/~3/asf3bSyPVXE/trustees-issue-2013-report-will-social-security-funds-dry-up-sooner-than-ex http://www.ffscambridge.com/blog/post/trustees-issue-2013-report-will-social-security-funds-dry-up-sooner-than-ex#When:17:00:00Z Last week, the Board of Trustees for the Social Security trust funds issued its annual report for 2013. Despite the temporary reduction in payroll tax collections enacted in response to the Great Recession, they project that the dates for exhaustion of the Medicare and Social Security trusts remain unchanged: the Social Security trust is expected to run out in 2033, and the Medicare trust should do the same in 2026. The Trustees also oversee the trust that covers Social Security Disability benefits, and they warn that the disability trust will be depleted much sooner, in 2016.

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]]> Meeting Your Goals, News, Retirement, Planning for your retirement, Social Security, 2013-06-08T17:00:00+00:00 http://www.ffscambridge.com/blog/post/trustees-issue-2013-report-will-social-security-funds-dry-up-sooner-than-ex#When:17:00:00Z Additional Medicare Taxes in 2013 For High Earnings and Investment Income http://feedproxy.google.com/~r/FfsBlog/~3/i6-marxKXDE/additional_medicare_taxes_in_2013_for_high_earnings_and_investment_income http://www.ffscambridge.com/blog/post/additional_medicare_taxes_in_2013_for_high_earnings_and_investment_income#When:05:22:00Z Beginning next year, some taxpayers will pay additional Medicare taxes as one consequence of the Patient Protection And Affordable Care Act.

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]]> Housing, News, Retirement, Social Security, Taxes, Tax Updates, 2012-08-12T05:22:00+00:00 http://www.ffscambridge.com/blog/post/additional_medicare_taxes_in_2013_for_high_earnings_and_investment_income#When:05:22:00Z Federal Reserve: Great Recession Set Household Finances Back Two Decades http://feedproxy.google.com/~r/FfsBlog/~3/VOyAQKuS4QI/federal_reserve_great_recession_set_household_finances_back_two_decades http://www.ffscambridge.com/blog/post/federal_reserve_great_recession_set_household_finances_back_two_decades#When:00:10:00Z The Federal Reserve’s latest report demonstrates quantitatively something that many already knew intuitively: American households took a serious hit in net worth and income during the Great Recession.

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]]> Economy, News, 2012-06-13T00:10:00+00:00 http://www.ffscambridge.com/blog/post/federal_reserve_great_recession_set_household_finances_back_two_decades#When:00:10:00Z Social Security Trustees: Expect 2013 Wage Base Increase http://feedproxy.google.com/~r/FfsBlog/~3/g3YUoE1ztKc/social_security_trustees_expect_2013_wage_base_increase http://www.ffscambridge.com/blog/post/social_security_trustees_expect_2013_wage_base_increase#When:23:41:00Z The Board of Trustees for the Social Security and Medicare trust fund issued its 2012 annual report in April. Although the new wage base for Social Security will not be officially set until October of this year, it's expected to rise from $110,100 to $113,700 based on their current inflation estimates. The wage base is the maximum income on which Social Security taxes are paid.

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]]> Economy, News, Retirement, Social Security, 2012-06-08T23:41:00+00:00 http://www.ffscambridge.com/blog/post/social_security_trustees_expect_2013_wage_base_increase#When:23:41:00Z Visual Display of the Federal Budget http://feedproxy.google.com/~r/FfsBlog/~3/QAI7VVGf37I/visual_display_of_the_federal_budget http://www.ffscambridge.com/blog/post/visual_display_of_the_federal_budget#When:09:18:01Z Having a hard time understanding all the discussion of the Federal Budget deficit? The Congressional Budget Office has a nice infographic of Federal spending, revenues, and the deficit.

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]]> Economy, News, 2011-12-16T09:18:01+00:00 http://www.ffscambridge.com/blog/post/visual_display_of_the_federal_budget#When:09:18:01Z 3.8% Medicare Tax on Investment Income Set to Start in 2013 http://feedproxy.google.com/~r/FfsBlog/~3/VYZzlgunQ_o/38_medicare_tax_on_investment_income_set_to_start_in_2013 http://www.ffscambridge.com/blog/post/38_medicare_tax_on_investment_income_set_to_start_in_2013#When:22:49:01Z In the midst of gripping near-term news of deficits and economic crises, taxpayers may not be aware that a looming tax on investment income will begin to nick higher-income earners starting in 2013.

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]]> Health Care, News, Taxes, Tax Updates, 2011-12-06T22:49:01+00:00 http://www.ffscambridge.com/blog/post/38_medicare_tax_on_investment_income_set_to_start_in_2013#When:22:49:01Z December 2011: Last Chance to Take Advantage of Home Energy Credits http://feedproxy.google.com/~r/FfsBlog/~3/wRCSJl_wMp4/december_2011_last_chance_to_take_advantage_of_home_energy_credits http://www.ffscambridge.com/blog/post/december_2011_last_chance_to_take_advantage_of_home_energy_credits#When:05:45:00Z For the foreseeable future, a number of tax credits for home energy efficiency improvements will go away at the end of 2011. Here are some credits that apply to improvements made to a taxpayer’s principal residence.

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]]> Housing, Buying/Owning a House, Taxes, Tax Updates, Yearend Tax Ideas, 2011-12-03T05:45:00+00:00 http://www.ffscambridge.com/blog/post/december_2011_last_chance_to_take_advantage_of_home_energy_credits#When:05:45:00Z Massachusetts Economy Could be Hit Hard By Automatic Spending Cuts http://feedproxy.google.com/~r/FfsBlog/~3/YxwmM31jrmM/massachusetts_economy_could_be_hit_hard_by_automatic_spending_cuts http://www.ffscambridge.com/blog/post/massachusetts_economy_could_be_hit_hard_by_automatic_spending_cuts#When:21:09:00Z Now that the Congressional Super-Committee’s attempts to produce deficit cuts have failed, the Budget Control Act calls for specific budget cuts that commence in January 2013. If this actually comes to pass, the resulting defense-related cuts would have a significant impact in Massachusetts and elsewhere.

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]]> Boston/Cambridge/New England, Economy, News, 2011-12-01T21:09:00+00:00 http://www.ffscambridge.com/blog/post/massachusetts_economy_could_be_hit_hard_by_automatic_spending_cuts#When:21:09:00Z New England Economy:  Hobbling Into 2012 http://feedproxy.google.com/~r/FfsBlog/~3/TtGGI20R8AA/new_england_economy_hobbling_into_2012 http://www.ffscambridge.com/blog/post/new_england_economy_hobbling_into_2012#When:05:02:01Z I was unable to attend last week’s New England Economic Partnership conference, but it sounds like it was a fairly somber gathering.

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]]> Boston/Cambridge/New England, Economy, Housing, News, 2011-11-26T05:02:01+00:00 http://www.ffscambridge.com/blog/post/new_england_economy_hobbling_into_2012#When:05:02:01Z Super-Committee Fail May Trigger Budget Cuts http://feedproxy.google.com/~r/FfsBlog/~3/an9y5a6PtZk/super_committee_fail_may_trigger_budget_cuts http://www.ffscambridge.com/blog/post/super_committee_fail_may_trigger_budget_cuts#When:03:24:00Z Now that the Congressional Super-Committee has thrown in the towel, the automatic spending cuts mandated by the Budget Control Act of 2011 are set to kick in unless Congress gets its act together.

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]]> Economy, News, Taxes, Tax Updates, 2011-11-24T03:24:00+00:00 http://www.ffscambridge.com/blog/post/super_committee_fail_may_trigger_budget_cuts#When:03:24:00Z Many 401(k) Participants Missing Out On A “Sure Thing” Investment http://feedproxy.google.com/~r/FfsBlog/~3/S0U-cFxFE00/many_401k_participants_missing_out_on_a_sure_thing_investment http://www.ffscambridge.com/blog/post/many_401k_participants_missing_out_on_a_sure_thing_investment#When:21:45:00Z There are no guaranteed investments, but the employer matching contribution comes awfully close. Why are so many workers passing up the opportunity to get free money?

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]]> 2011-11-21T21:45:00+00:00 http://www.ffscambridge.com/blog/post/many_401k_participants_missing_out_on_a_sure_thing_investment#When:21:45:00Z 2011 Year-End Mutual Fund Distributions and Tax Planning http://feedproxy.google.com/~r/FfsBlog/~3/60ve41JDuYc/2011_year_end_mutual_fund_distributions_and_tax_planning http://www.ffscambridge.com/blog/post/2011_year_end_mutual_fund_distributions_and_tax_planning#When:20:50:00Z As the end of the year approaches, mutual fund owners may benefit from examining their holdings and considering some timely sales.

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]]> Investing, Mutual Funds, Taxes, Yearend Tax Ideas, 2011-11-18T20:50:00+00:00 http://www.ffscambridge.com/blog/post/2011_year_end_mutual_fund_distributions_and_tax_planning#When:20:50:00Z Supercommittee Might Change Retirement Plan Tax Incentives http://feedproxy.google.com/~r/FfsBlog/~3/EkedxbUbg6E/supercommittee_might_change_retirement_plan_tax_incentives http://www.ffscambridge.com/blog/post/supercommittee_might_change_retirement_plan_tax_incentives#When:03:55:00Z As the Congressional Supercommittee considers ways to cut the federal deficit, one element of their proposal might be a change in retirement savings tax policy.

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]]> 2011-11-16T03:55:00+00:00 http://www.ffscambridge.com/blog/post/supercommittee_might_change_retirement_plan_tax_incentives#When:03:55:00Z Bank of America Retreats From Debit Card Fee Plan http://feedproxy.google.com/~r/FfsBlog/~3/ylEDXYwRM_U/bank_of_america_retreats_from_debit_card_fee_plan http://www.ffscambridge.com/blog/post/bank_of_america_retreats_from_debit_card_fee_plan#When:20:42:00Z Citing negative feedback from customers, Bank of America has done a complete about-face from its plan to charge most customers a $5-a-month debit card usage fee starting next year.

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]]> Cash Flow, Saving, News, 2011-11-02T20:42:00+00:00 http://www.ffscambridge.com/blog/post/bank_of_america_retreats_from_debit_card_fee_plan#When:20:42:00Z Massachusetts Banks That Still Offer Free Checking http://feedproxy.google.com/~r/FfsBlog/~3/fK8kGLn93j4/massachusetts_banks_that_still_offer_free_checking http://www.ffscambridge.com/blog/post/massachusetts_banks_that_still_offer_free_checking#When:02:57:00Z Earlier this week I noted that it's getting harder to find banks that don't charge for checking accounts. Here are the names of several MA banks that still offer full-service checking accounts for free.

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]]> Boston/Cambridge/New England, Cash Flow, Saving, 2011-10-29T02:57:00+00:00 http://www.ffscambridge.com/blog/post/massachusetts_banks_that_still_offer_free_checking#When:02:57:00Z Department of Labor Makes 401(k) Fees More Transparent in 2012 http://feedproxy.google.com/~r/FfsBlog/~3/yI_MAn3Vlb4/department_of_labor_makes_401k_fees_more_transparent_in_2012 http://www.ffscambridge.com/blog/post/department_of_labor_makes_401k_fees_more_transparent_in_2012#When:08:44:00Z According to a recent AARP poll, 71% of 401(k) plan participants believe that they don’t pay any fees in their company’s plan. In fact, most do, but the fees are not disclosed or are so deeply buried in plan reports that most employees are blissfully unaware of what the actual costs are. New Labor Department regulations will change that next year.

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]]> 2011-10-28T08:44:00+00:00 http://www.ffscambridge.com/blog/post/department_of_labor_makes_401k_fees_more_transparent_in_2012#When:08:44:00Z Avoiding Increased Debit Card Fees and Other Bank Fee Hikes http://feedproxy.google.com/~r/FfsBlog/~3/bmwUiEO9m58/avoiding_increased_debit_card_fees_and_other_bank_fee_hikes http://www.ffscambridge.com/blog/post/avoiding_increased_debit_card_fees_and_other_bank_fee_hikes#When:18:11:00Z A number of banks are developing annoying new checking account fees. What’s a consumer to do?

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]]> Cash Flow, Financial Planning Advice, News, 2011-10-24T18:11:00+00:00 http://www.ffscambridge.com/blog/post/avoiding_increased_debit_card_fees_and_other_bank_fee_hikes#When:18:11:00Z IRS Announces 2012 Limits for Retirement Plan Contributions and Tax Phase-Out Changes http://feedproxy.google.com/~r/FfsBlog/~3/u2ANMWGIPC8/irs_announces_2012_limits_for_retirement_plan_contributions_and_tax_phase_o http://www.ffscambridge.com/blog/post/irs_announces_2012_limits_for_retirement_plan_contributions_and_tax_phase_o#When:09:06:00Z In response to increases in the cost-of-living index, the IRS announced today that adjustments that will be made to contribution limits for some types of retirement plans.

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]]> News, Retirement, Planning for your retirement, 401(k)/403(b) plans, IRAs, Taxes, Tax Updates, 2011-10-21T09:06:00+00:00 http://www.ffscambridge.com/blog/post/irs_announces_2012_limits_for_retirement_plan_contributions_and_tax_phase_o#When:09:06:00Z Social Security Administration Announces Cost-Of-Living Increases for 2012 http://feedproxy.google.com/~r/FfsBlog/~3/IUVoHzD5IGc/social_security_administration_announces_cost_of_living_increases_for_2012 http://www.ffscambridge.com/blog/post/social_security_administration_announces_cost_of_living_increases_for_2012#When:03:58:00Z The Social Security Administration announced yesterday that there will be a cost-of-living increase in monthly Social Security benefit checks next year. There were no increases in 2010 and 2011 because the cost of living calculated by the Bureau of Labor Statistics hasn’t increased since the third quarter of 2008.

Starting in January of 2012, Social Security beneficiaries will receive a 3.6 percent benefit increase, and SSI benefits will increase similarly on December 30, 2011.

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]]> News, Retirement, Social Security, 2011-10-21T03:58:00+00:00 http://www.ffscambridge.com/blog/post/social_security_administration_announces_cost_of_living_increases_for_2012#When:03:58:00Z 2010 Roth IRA Conversions: The Deadline to Recharacterize Approaches http://feedproxy.google.com/~r/FfsBlog/~3/p-KYDS_CfJk/2010_roth_ira_conversions_the_deadline_to_recharacterize_approaches http://www.ffscambridge.com/blog/post/2010_roth_ira_conversions_the_deadline_to_recharacterize_approaches#When:19:07:00Z Quite a few taxpayers did Roth conversions last year, taking advantage of the change in conversion eligibility rules. But for some of them, now might be the time for a do-over.

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]]> Financial Planning Advice, Investing, Retirement, IRAs, Taxes, Yearend Tax Ideas, 2011-10-11T19:07:00+00:00 http://www.ffscambridge.com/blog/post/2010_roth_ira_conversions_the_deadline_to_recharacterize_approaches#When:19:07:00Z Six Year-end Tax Ideas for 2011 http://feedproxy.google.com/~r/FfsBlog/~3/186MPsxVazM/six_year_end_tax_ideas_for_2011 http://www.ffscambridge.com/blog/post/six_year_end_tax_ideas_for_2011#When:06:44:00Z It’s unclear whether significant tax reforms will be enacted for 2012, so year-end planning could be tricky this year. Still, there are some tax strategies that should at least be examined for possible implementation before 2011 ends.

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]]> Education Planning, Financial Planning Advice, Retirement, 401(k)/403(b) plans, IRAs, Taxes, Yearend Tax Ideas, 2011-10-07T06:44:00+00:00 http://www.ffscambridge.com/blog/post/six_year_end_tax_ideas_for_2011#When:06:44:00Z Should You Be Concerned About The Eurozone Debt Crisis? http://feedproxy.google.com/~r/FfsBlog/~3/-5nG3jFaMDM/should_you_be_concerned_about_the_eurozone_debt_crisis http://www.ffscambridge.com/blog/post/should_you_be_concerned_about_the_eurozone_debt_crisis#When:20:28:00Z For most Americans, the European Debt Crisis is anything but riveting. Sure, Wall Street has been bouncing up and down in response to news about the Euro bailout fund, but Greek sovereign debt is a pretty esoteric subject for almost everyone else. Yet the cover of this week’s Economist magazine advises, “be afraid.” What are they worried about?

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]]> Favorites, Economy, Financial Planning Advice, Housing, Buying/Owning a House, Investing, News, Risk Management, 2011-10-01T20:28:00+00:00 http://www.ffscambridge.com/blog/post/should_you_be_concerned_about_the_eurozone_debt_crisis#When:20:28:00Z Motivation to Save for Retirement:  Imagine Yourself Older http://feedproxy.google.com/~r/FfsBlog/~3/8OrlDZB2HjU/motivation_to_save_for_retirement_imagine_yourself_older http://www.ffscambridge.com/blog/post/motivation_to_save_for_retirement_imagine_yourself_older#When:19:09:01Z The November Journal of Marketing Research focuses on research into the ways that consumers make financial decisions. One of the papers describes a potentially useful tool for encouraging young people to save for retirement.

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]]> Financial Planning Advice, Meeting Your Goals, News, Retirement, Planning for your retirement, 2011-09-30T19:09:01+00:00 http://www.ffscambridge.com/blog/post/motivation_to_save_for_retirement_imagine_yourself_older#When:19:09:01Z The European Economic Crisis Explained…Using Legos http://feedproxy.google.com/~r/FfsBlog/~3/KpIc5soQGdM/the_european_economic_crisis_explainedusing_legos http://www.ffscambridge.com/blog/post/the_european_economic_crisis_explainedusing_legos#When:22:05:00Z

Michael Cembalest, Chief Investment Officer at investment bank JPMorgan, has done the world a service by publishing a graphic view of the European Crisis, courtesy of his 9-year-old son.

image

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]]> Favorites, Economy, Investing, News, Risk Management, 2011-09-27T22:05:00+00:00 http://www.ffscambridge.com/blog/post/the_european_economic_crisis_explainedusing_legos#When:22:05:00Z Will The Federal Reserve Bring Back The Twist? http://feedproxy.google.com/~r/FfsBlog/~3/NTf6omv2IGY/will_the_federal_reserve_bring_back_the_twist http://www.ffscambridge.com/blog/post/will_the_federal_reserve_bring_back_the_twist#When:23:13:00Z The financial press is buzzing with rumors that the Federal Reserve will try to boost economic activity by revisiting actions it took in 1961. At the time, the move was known as “Operation Twist.”

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]]> 2011-09-21T23:13:00+00:00 http://www.ffscambridge.com/blog/post/will_the_federal_reserve_bring_back_the_twist#When:23:13:00Z You Can’t Make An Inherited IRA Last Forever http://feedproxy.google.com/~r/FfsBlog/~3/nazUg4sOK5c/you_cant_make_an_inherited_ira_last_forever http://www.ffscambridge.com/blog/post/you_cant_make_an_inherited_ira_last_forever#When:08:37:00Z An important aspect of Roth and traditional IRAs is that they can be inherited, with potential benefits for the heir(s). However, there are some myths afloat about inherited IRAs that need to be sunk.

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]]> Really Bad Ideas, Retirement, IRAs, 2011-09-17T08:37:00+00:00 http://www.ffscambridge.com/blog/post/you_cant_make_an_inherited_ira_last_forever#When:08:37:00Z Preparers Affected By Hurricane Irene Receive One-Week IRS Extension http://feedproxy.google.com/~r/FfsBlog/~3/U8sWbNlacMo/preparers_affected_by_hurricane_irene_receive_one_week_irs_extension http://www.ffscambridge.com/blog/post/preparers_affected_by_hurricane_irene_receive_one_week_irs_extension#When:08:54:00Z The IRS has announced that in addition to relief already announced for taxpayers in Federal disaster areas, it is giving a one-week extension of the September 15th filing deadline to taxpayers whose preparers are located in areas that were under a severe weather warnings or an evacuation order as a result of Hurricane Irene.

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]]> Boston/Cambridge/New England, News, Taxes, Tax Updates, 2011-09-03T08:54:00+00:00 http://www.ffscambridge.com/blog/post/preparers_affected_by_hurricane_irene_receive_one_week_irs_extension#When:08:54:00Z What Does Your Homeowner’s Policy Cover After an Earthquake? http://feedproxy.google.com/~r/FfsBlog/~3/BqwLPlRjdSc/what_does_your_homeowners_policy_cover_after_an_earthquake http://www.ffscambridge.com/blog/post/what_does_your_homeowners_policy_cover_after_an_earthquake#When:03:07:00Z Today’s earthquake centered near Mineral, Virginia caught New Englanders by surprise as its shock wave rumbled through the area. Although we tend to think of earthquakes as a west coast phenomenon, today’s tremor reminded easterners that we get them sometimes too. How much does a standard homeowner’s policy cover in the event of an earthquake?

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]]> Boston/Cambridge/New England, News, Risk Management, Emergencies, 2011-08-24T03:07:00+00:00 http://www.ffscambridge.com/blog/post/what_does_your_homeowners_policy_cover_after_an_earthquake#When:03:07:00Z Is My Bank Safe? http://feedproxy.google.com/~r/FfsBlog/~3/dufevWfyqkU/is_my_bank_safe http://www.ffscambridge.com/blog/post/is_my_bank_safe#When:19:23:00Z This week, a friend expressed concern to me about the safety of his bank. So today I'm addressing two questions: how can you find out whether your bank is in good financial shape, and just how strong is the FDIC's insurance fund?

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]]> Cash Flow, Saving, Economy, News, Risk Management, 2011-08-11T19:23:00+00:00 http://www.ffscambridge.com/blog/post/is_my_bank_safe#When:19:23:00Z So Which Nations Are Still AAA? http://feedproxy.google.com/~r/FfsBlog/~3/z0IqjH-A6S0/so_which_nations_are_still_aaa http://www.ffscambridge.com/blog/post/so_which_nations_are_still_aaa#When:17:27:00Z Now that Standard and Poor’s has lowered the US debt rating to AA+, only sixteen nations have the highest rating from all three major ratings agencies (S&P, Moody’s and Fitch).

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]]> Economy, News, 2011-08-10T17:27:00+00:00 http://www.ffscambridge.com/blog/post/so_which_nations_are_still_aaa#When:17:27:00Z