RJ and Makay

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Europe is on its way to a recession, and the resulting slowdown could impact the U.S. economy in the second half of 2012, according to Chris Wolfe, chief investment officer of Merrill Lynch Private Banking and Investment Group.  Germany recently reported that its economy shrank at the end of last year, and the European Union as a whole revised its economic growth figures for the third quarter to 0.1%, its slowest pace in over two years.

It may not be necessary to complete the second round of quantitative easing (QE2), the Federal Reserve's $600 billion bond-buying program aimed at stimulating the U.S. economy, suggests St. Louis Federal Reserve Bank President James Bullard. “The economy is looking pretty good,” he explains. "It's still reasonable to review QE2 at coming meetings, especially this April, and see if we want to finish the program or stop a little bit short."

However, Fed Chairman Ben Bernanke has given no indication the central bank will deviate from its plan to buy bonds through June to spur economic growth and reduce unemployment. In two days of congressional testimony earlier this month, Bernanke said that while growth will accelerate in 2011, he still wants to see a sustained period of stronger job creation before curtailing economic stimulus.

Because the cost of living is so high in the U.S. compared with many other parts of the world, older Americans are increasingly likely to look for someplace else to retire. Currently, an estimated half million retired Americans reside abroad, and that number is expected to rise significantly over the next ten years as Baby Boomers retire en masse.

Once they've done the upfront research, picked where they want to live, and made the move, retirees often don't look back. Many say the lifestyle in their adopted countries is as good if not better than what they were used to in the U.S., depending on the country. Currently, the most popular retirement destinations abroad are Central American countries such as Nicaragua, Panama, and Costa Rica. Belize in the Caribbean is also a top choice.