Financial News Friday – July 26, 2013

To open an insurance exchange in a state, one of the stipulations of Obamacare is for the state to expand Medicaid, the federal insurance program for the poor. Obamacare mandates coverage to be expanded to 138% of the poverty line. 21 states are not expanding Medicaid, due to the financial burden it would impose on the state over the long-term. Therefore, residents in those 21 states will not receive insurance subsidies nor be penalized for being uninsured. 23 states have agreed to expand coverage and 6 are still considering the proposal. (CNN Money)

60% of millionaires with $5 million in net worth say they feel wealthy, whereas only 28% of millionaires with $1-$5 million feel wealthy. (The Street)

Spend your way to prosperity…Detroit goes bankrupt, police take an hour to respond to calls, and 40% of street lights are turned off to conserve electricity, yet the city continues its plans to build a $444 million hockey stadium. (CNN Money)

83% of investors with $100,000 or more in investable assets fear another financial crisis. Investment News points out that this is greater than the “58% who fear death and the 57% who fear public speaking. The only common fear that evokes similar distress is skydiving (81%).” (Investment News)

Detroit may reduce pension benefits for city workers currently receiving benefits. Of those covered, many public service workers such are firefighters and police officers are not covered by Social Security, therefore the pension benefit is their only source of income. (CNN Money)

Fidelity Investments reports that average balances of IRA accounts are up 50% since 2008. Average balances have increased to $81,000 by the end of 2012. The 60 to 69 age bracket increased 70% from $75,000 to $127,000 and the 50 to 59 age bracket increased 81% from $41,900 to $75,700. (Bloomberg)

Is your credit card getting hit with hidden charges from an auto-enrollment subscription or membership program? 35% of credit card holders are charged these “gray charges” each year. (CNN Money)

Bloomberg has put together a slideshow of the 12 states that receive the highest percentage of their revenues form sin taxes. (Bloomberg)