Posts Tagged ‘investing’

Millennials are saving more for retirement

Posted on November 10, 2017 by Laura Lam

In the race to save for retirement, one group is doing surprisingly well: millennial parents.  That’s according to a new NerdWallet survey, which found that 38% of millennial parents (ages 18-34) save more than 15% of their income for retirement. All told, millennial parents reported a median retirement savings rate of 10% of income, compared with 8% for Generation X parents (ages 35-54) and just 5% for baby boomer parents (ages 55+). Given the picture typically painted of this age group, you might be shouting “fake news” right now. There’s one caveat: The results include only those currently saving for…

73% of Americans Have Financial Regrets

Posted on June 06, 2017 by Laura Lam

Nearly 3-in-4 U.S. adults have financial regrets, according to a new Bankrate.com report. The most common is not saving for retirement early enough, followed by not saving enough for emergency expenses and taking on too much credit card debt. Taking on too much student loan debt is fourth, however, it tops the list among older millennials (27-36 year-olds). Fifth overall is not saving enough for your children’s education and sixth is buying more house than you could afford. Baby Boomers are the most likely to regret not saving for retirement earlier; remorse over this issue grows steadily from age 18-62. It’s…

Millennials’ Financial Habits Differ from Previous Generations

Posted on May 12, 2017 by Laura Lam

More so than Gen X and baby boomers, millennials prioritize issues like buying a home, purchasing cars, saving for and planning vacations and weddings and college planning, according to a recent Stash survey.  Yet these are not issues that most financial advisers typically bring up with clients.  “We have a retirement, baby-boomer-centric service model that tends not to interest millennials,” said Alan Moore, co-founder of the XY Planning Network.  “Advisers need to look at where younger investors are in their lives and help them with those issues, such as navigating debt.” The financial habits of millennials,a giant generation of 92 million people…

Should Marketplace Lenders Draw on Geographical Data?

Posted on March 29, 2016 by Laura Lam

The fast-growing online lending business has brought a new twist to one of the most sensitive topics in lending: geography. Lenders, including online services known as “peer to peer” marketplaces, aren’t allowed to discriminate based on age, race and other factors. Skipping neighborhoods, or marketing to one neighborhood over another, has been the basis for “redlining” suits in which federal regulators accuse banks of discrimination. The fair-lending rules were written before the boom in online lending – and they don’t deal specifically with the investors who fund the loans online.  That has created questions about whether it is appropriate for investors in online loans…

What Retirement Looks Like Today

Posted on November 24, 2015 by Saldutti

Baby boomers are not embracing traditional retirement as we know it. In fact, the time-honored idea of packing up your desk and retiring to a beach on your 65th birthday may very well be a relic of the past, thanks to factors like longer life expectancies and inadequate savings.  This generation dutifully played by the rules: 81% of employed boomers who are offered a 401(k) or similar plan participate. The median they save each year is 10% of their salaries. A little more than 50% surveyed say that they have a “large enough” nest egg for retirement.  Yet, even with all this,…

The Average American Household’s Income by Age

Posted on September 29, 2015 by Saldutti

It’s the great upside-down U. Those in the workforce are familiar with the typical earnings arc in America: You start out at the bottom, work your way up, then experience a rather significant downward trend in earnings once you hit your Golden Years.  The Census Bureau just came out with its most-recent report on income in America, and it supports this broad generalization. Here’s what the data revealed about the median American household’s income, based on the age of the primary breadwinner. As you can see, there’s a steep increase in earnings from your teens through your mid-fifties. Between the…

Do You Make These 5 Money Mistakes With Your Kids?

Posted on September 22, 2015 by Saldutti

Personal finance expert and author of the forthcoming book “Make Your Kid a Money Genius (Even If You’re Not),” Beth Kobliner discovered that many parents have a harder time explaining how money works to their kids than talking about sex or drugs.  “Part of it is that parents are afraid they don’t know enough to talk to their kids, and another part of it is that we’re afraid to reveal our own money foibles to our children,” explained Kobliner, who also wrote the New York Times best-seller “Get A Financial Life.” “That’s a problem because we now know the number…

Will You Retire Debt-Free?

Posted on August 25, 2015 by Saldutti

Do you know how much you need in savings to fund your retirement? Are you factoring in your current debts? You may have just assumed that home, car and credit card payments would disappear by retirement but this doesn’t happen automatically. Since no one wants their post-work living to be focused around bills and stress, one of the best ways to ensure peace of mind is to save aggressively for retirement while also paying off any existing debt before retirement starts. Credit.com shows us this 4-step checklist to ensure that your golden years will be stress-free. 1. Avoid Lifestyle Inflation –…

Wearables Combine Fitness and Finance

Posted on August 19, 2015 by Saldutti

Health and wellness apps may not much in common with small-business payments and merchant services, but it was the fitness-tracking craze that lit a fire under Intuit to build an Apple Watch app for its clients.  Intuit released its GoPayment Sales Goal Tracker, which allows small-business owners to view transaction performance through an Apple Watch. The idea is the client can track payments data similar to how one might use an Apple Watch or Fitbit to track progress toward an exercise goal. Inspired by the health tracker apps, this device allows you to “set a sales goal and you track…

Investors Still Value Relationship With Financial Advisors

Posted on July 16, 2015 by Saldutti

Financial advisors got some encouraging news from the latest Wells Fargo/Gallup Investor and Retirement Optimism survey. Despite the recent proliferation of robo-advisors, U.S. investors prefer personal financial advisors 2 to 1.  When asked which 3 professional resources are most important to them, 50% of the respondents ranked a strong relationship with a personal financial advisor first; 24% chose state-of-the-art online or digital investing tools; and 19% chose on-call access to a financial advisor. “Technology is important, but the highest number of investors want a personal relationship with a financial advisor,” says Mary Mack, president of Wells Fargo Advisors. “Many clients…