A new survey from JPMorgan Chase revealed that 21% of Americans don’t have brokerage accounts, or have any other way to invest other than their company 401K or pension plan.
Even a few hundred dollars a month put in a brokerage account, invested in the stock market and allowed to grow over multiple decades can make a difference in the long term.
Please go to: finance.yahoo.com/video/why-many-americans-don-t-142910567.html
Nearly 8 out of 10 workers (78%) live paycheck to paycheck, according to a new survey from CareerBuilder.com.1 That’s up from 75% last year, and it applies even to those making 6 figures: 1 in 10 workers making $100,000 or more say they live paycheck to paycheck.
“In working with many clients over the years, I have found that most people tend to spend their entire paycheck if it is available in their bank account, regardless of whether they are at a low/middle level or are highly compensated,” says Marc Kodomatsu, a financial planner in Lake Oswego, OR.
If you’re putting away adequate savings for your goals and you have a healthy emergency fund, living paycheck to paycheck isn’t necessarily a disaster. But a quarter of Americans have no money saved for an emergency, according to Bankrate, and 20% have less than 3 months of living expenses in the bank.
“The events in Houston are a stark reminder of the perils of living paycheck to paycheck,” says Thomas Balcom, a financial planner in Lauderdale-by-the-Sea, FL. “For those folks who have flood insurance, they may not have the funds available to cover their deductible or tie them over until they return to work.”
Breaking the paycheck-to-paycheck cycle takes discipline and a plan. Here’s what top financial experts recommend as the best steps toward more financial independence:
— Read on www.fidelity.com/mymoney/how-to-stop-living-paycheck-to-paycheck
The Tax Cuts and Jobs Act of 2017 (TCJA) ushered in big changes that significantly affected many taxpayers’ 2018 returns. By contrast, 2019 tax changes are subtle, mostly reflecting inflation adjustments to exemptions and tax brackets.
Still, the cutoffs for specific rates and exemptions may affect your final investment decisions for 2019. Here are nine things to keep in mind as you prepare to file your 2019 taxes.
— Read on www.schwab.com/resource-center/insights/content/taxes-9-things-to-know-now
Key Point
The dividing line remains firm
U.S. economic growth slowed in 2019, pulled down by weak business investment and manufacturing activity. Although strength in consumer spending and services persists heading into 2020, we expect stabilization—at best—in growth next year.
Myriad uncertainties are clouding the outlook, including earnings and the presidential election. Ongoing trade war ambiguity could further depress corporate confidence and investment.
A key risk in 2020 is that manufacturing weakness and business investment fatigue could hurt services activity and consumer spending, by depressing job growth. Although the U.S. unemployment rate (a lagging indicator) remains low, weekly initial jobless claims (a leading indicator) in manufacturing-oriented states have been rising.
As such, U.S. payroll growth may weaken if limited headway is made on a comprehensive trade deal. However, global economic stabilization could be positive for U.S. growth.
— Read on www.schwab.com/resource-center/insights/content/outlook-us-stocks-and-economy
What is a Credit Report and Why is it Important?
Understanding what a credit report is could be confusing. Learn what information a credit report contains and how to get your credit report for free.
— Read on www.americanexpress.com/en-us/credit-cards/credit-intel/what-is-credit-report/
Living paycheck to paycheck is stressful.
The concept brings to mind a tightrope walker wobbling on the high wire. Unfortunately, it’s a reality for many Americans. A USAA study last year revealed a third of our members are walking that tightrope. If this is you, we can help.
Whether you’re making $30,000 or $300,000, it’s easy to fall into the trap of living paycheck to paycheck. And the scary thing is you may not even realize it.
— Read on communities.usaa.com/t5/Family-Life/7-Signs-You-re-Walking-a-Financial-Tightrope/ba-p/201662
Source: MyMoney.gov
For many households, financial health is measured by income. While income is an important component of financial health, it is only part of the equation.
Some experts and academics believe that an individual’s net worth is a better measure of financial health than income. Net worth or wealth can determine if a family has the wherewithal to deal with a financial crisis, such as the loss of employment or long-term sickness. And it also allows for investments in a home, small business and higher education. In other words, a household with no wealth or negative net worth may not be financially healthy despite a high salary.
Photo by Pixabay on Pexels.com
The type of assets held by a household also affects its financial health, with illiquid assets and short-term liabilities a greater potential risk than liquid assets and long-term debt.
For many financial educators and households, assessing a household’s net worth is the start of the conversation. It allows financial advisers or households to create a financial plan that considers assets and liabilities which can lead to better financial health and outcome.
Net worth considerations would also provide policymakers with a more accurate picture of financial health to assess middle class economic security across different demographic populations.
There are other reasonable approaches to considering overall financial health or well-being. For example, the Center for Financial Services Innovation (CFSI) looks at four components (spending, saving, borrowing, and planning) and eight indicators of financial health as well as data that can be collected to make the financial health assessment. The data collected to measure the financial health for each component range from the difference between income and expenses (for spending) to the debt-to-income ratio (for borrowing) to the type and extent of insurance coverage (for planning).
The type of assets also matters for financial health. For example, CFSI distinguishes between liquid and illiquid assets by pointing out that liquid assets are “important for coping with an unexpected expense,” while [illiquid] long-term savings promote financial security.27
Financial well-being has been identified as a common outcome goal of financial education efforts.28 CFPB has developed a robust and validated scale to measure a person’s sense of financial well-being, which CFPB defines as the “state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future and is able to make choices that allow them to enjoy life.”29 While this measure is subjective, a number of trackable and objective factors are strongly associated with a person’s level of financial well-being, most notably having liquid savings.
27. Parker, Sarah, Castillo, Nancy, Garon, Thea, and Levy, Rob,“Eight Ways to Measure Financial Health”,Center for Financial Services Innovation, May 2016, available at: https://s3.amazonaws.com/cfsi-innovation-files-2018/wp-content/uploads/2016/05/09212818/Consumer-FinHealth-Metrics-FINAL_May.pdf.
28. For example, see Financial Literacy and Education Commission, “Promoting Financial Success in the United States: National Strategy for Financial Literacy 2011”, available at: https://www.treasury.gov/resource-center/financial-education/Documents/NationalStrategyBook_12310%20(2).
29. “Financial Well-being: What it means and how to help”, Consumer Financial Protection Bureau, 2015, available at: https://www.consumerfinance.gov/ data-research/research-reports/financial-well-being/.
U.S. consumer activity remained robust and employment continued to set records – hence the many critics and even a few Fed dissenters of the “mid-cycle adjustment.” Now, Treasuries are selling off with some momentum the last two months as the economy stabilizes.
It’s not that our economy is vastly improving – it’s that it’s stabilizing with the rest of the world while geopolitics are looking less dire. So rates are a little topsy-turvy, going up without real economic acceleration.
— Read on mail.tdameritradenetwork.com/H/2/v40000016e6519f5f6b372a96e965fc958/67faea12-ef19-46a7-9842-7bf7e98df4dd/HTML
3 secrets for women to conquer money stress
Fidelity research shows how to live financially stress-free.
FIDELITY VIEWPOINTS – 06/20/2019
What can you do to help improve your financial security and overall wellbeing? The women in our survey who aren’t stressing out over money and health share 3 secrets to success.
In everyday life, stuff happens. The roof leaks. The car breaks down. The kids need a cash infusion. That’s why it’s critical to have an emergency fund, no matter your life stage, gender, marital status, or income.
Overall, Fidelity research finds that less than half of Americans have an adequate emergency fund. Our stress-free ladies break the mold: 77% have one.
If you don’t, here are 3 simple steps to get started:
Tip: Save a little bit each week or month until you reach that 6-month target and then you’ll feel better about the unexpected.
Taking care of your future self is as important as making time for yourself today. It can give you peace of mind too. Of the financially-zen in our survey, 29% say they have been saving at least 10% for retirement year after year.
To be confident you’ll have enough money to maintain your lifestyle in retirement, Fidelity recommends aiming to save 15% each year—but that includes any contributions from your employer. If you are fortunate enough to have one who matches your contributions in a 401(k) or 403(b) retirement account, grab it. That is like free money! And invested well, that money can grow over time.
This year you can contribute up to $19,000 to a 401(k) or 403(b)—and save on taxes too. No 401(k) at work? No worries. You can contribute up to $6,000 a year to an IRA (short for individual retirement account). Lastly, if you’re over age 50, you can contribute even more with catch-up contributions.
Tip: If you cannot save 10% or 15% at first, try to save at least enough to receive the full employer match at work.
Planning for life’s goals—a new house, a vacation, your retirement—is likely on your to-do list. But have you taken the first step?
While 72% of women surveyed say they want to begin a financial plan, only 52% are confident about doing so. Worse yet, 40% of all women say they lose sleep over money matters.
Our financially stress-free women know the power of planning for the life they want and deserve: 95% have some kind of financial plan in place, and 80% have a long-term plan.
— Read on www.fidelity.com/go/womens-investing/women-conquer-money-stress
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