The number of 401(k) millionaires hits an all-time high

The financial services firm handles more than 30 million retirement accounts altogether. In addition, the number of individual retirement account millionaires increased to 179,700, also an all-time high. When broken down by generation, millennials, or those at the early stages of their retirement planning, had an average balance of $29,000, while baby boomers averaged $198,000. Overall, the average 401(k) balance is $106,000, just shy of the all-time high balance of $106,500 reached in the third


The financial services firm handles more than 30 million retirement accounts altogether. In addition, the number of individual retirement account millionaires increased to 179,700, also an all-time high. When broken down by generation, millennials, or those at the early stages of their retirement planning, had an average balance of $29,000, while baby boomers averaged $198,000. Overall, the average 401(k) balance is $106,000, just shy of the all-time high balance of $106,500 reached in the third
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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jessica dickler
Keywords: news, cnbc, companies, saving, million, high, 401k, hits, fidelity, balance, taylor, alltime, retirement, millionaires, average, contribution, number


The number of 401(k) millionaires hits an all-time high

Despite recent market swings, some retirement savers are feeling pretty comfortable these days.

The number of Fidelity 401(k) plans with a balance of $1 million or more jumped to a record 196,000 as of June 30, up 17% from 168,000 last year, according to a new report by Fidelity, the nation’s largest provider of 401(k) plans. The financial services firm handles more than 30 million retirement accounts altogether.

In addition, the number of individual retirement account millionaires increased to 179,700, also an all-time high.

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Average retirement savings balances are now over six figures, according to Fidelity. When broken down by generation, millennials, or those at the early stages of their retirement planning, had an average balance of $29,000, while baby boomers averaged $198,000.

Overall, the average 401(k) balance is $106,000, just shy of the all-time high balance of $106,500 reached in the third quarter of 2018, while the average IRA balance is $110,400 as of the second quarter, also slightly below last year’s high of $111,000, Fidelity found.

Still, nearly a third of savers increased their contribution rate during the last year, Fidelity found. The average 401(k) contribution rate is now 8.8% — not including the employer match — the highest percentage ever.

On top of that, employers are contributing another 4.7%, on average, bringing the total contribution to 13.5%. “That’s really close to the 15% we believe people should be saving,” said Katie Taylor, a vice president at Fidelity.

As a rule of thumb, Taylor recommends saving 10 times your income by retirement age. Although $1 million is “a threshold that a lot of people anchor on,” Taylor said, a more accurate picture of your retirement number should be based on how much you make and your lifestyle.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jessica dickler
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Despite tax overhaul, marriage penalty still hits many couples

“The Tax Cuts and Jobs Act attempted to eliminate the marriage penalty but it only pushed it out farther,” Savage said. Under the new rules, which took effect last year, the marriage penalty kicks in for married couples with combined income of about $600,000 or more. At that point, married couples hit the top 37% federal income tax bracket. There are other tax implications for married couples, as well, including a Medicare surtax of 0.9% and a net investment income tax of 3.8%. Similarly, the ne


“The Tax Cuts and Jobs Act attempted to eliminate the marriage penalty but it only pushed it out farther,” Savage said. Under the new rules, which took effect last year, the marriage penalty kicks in for married couples with combined income of about $600,000 or more. At that point, married couples hit the top 37% federal income tax bracket. There are other tax implications for married couples, as well, including a Medicare surtax of 0.9% and a net investment income tax of 3.8%. Similarly, the ne
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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: jessica dickler
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Despite tax overhaul, marriage penalty still hits many couples

Two can live as cheaply as one, the old saying goes. Except for some high-income taxpayers.

Although the Tax Cuts and Jobs Act mostly eliminated the so-called — and hated — marriage penalty, some taxpayers, particularly high-income couples, could still end up paying more in taxes as a married pair than they would if they were each single.

The penalty typically kicks in when two individuals with equal incomes marry, bumping them into a higher tax bracket than they would be otherwise, said Mike Savage, a certified public accountant and CEO of 1-800Accountant.

“The Tax Cuts and Jobs Act attempted to eliminate the marriage penalty but it only pushed it out farther,” Savage said.

Under the new rules, which took effect last year, the marriage penalty kicks in for married couples with combined income of about $600,000 or more. At that point, married couples hit the top 37% federal income tax bracket. In contrast, a single filer reaches the 37% bracket at around $500,000, meaning an unmarried couple could enjoy income of $1 million before reaching the top bracket.

There are other tax implications for married couples, as well, including a Medicare surtax of 0.9% and a net investment income tax of 3.8%.

For example, an individual can have up to $200,000 in income before the Medicare surtax kicks in, but the limit for married couples is only $250,000.

Similarly, the net investment income tax also starts at $200,000 for single taxpayers, and $250,000 for married couples who file jointly.

In addition, long-term capital gains rates are 15% for single individuals up to $434,550 of taxable income and then rise to 20%. But for married couples, the 15% rate goes up to $488,850 of taxable income and jumps to 20% from there.

In every case, the penalty is not a specific tax, but rather the result of reaching a certain threshold sooner as a couple filing their taxes jointly. As the percentage of women in the workforce increases, along with their earnings in relation to men, more couples experience that tax hit.

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No matter when you get married during the year, come April, you’ll need to file your 2019 tax return as a married couple.

On the flipside, if you get divorced at any time, you’ll file as single in the spring.

“Your marital status for tax purposes is whatever your status is on Dec. 31 of each year,” said Robert Rehm, a vice president of tax services at Mariner Wealth Advisors. “If you get divorced on the last day of the year, for tax purposes, you are treated as being unmarried for the entire year.”

However, splitting up to avoid the penalties rarely makes sense, since there are other tax advantages that come with filing jointly.

“If you were going to get unmarried, you are throwing away other benefits” said Dave Stolz, a CPA and member of the American Institute of CPAs’ personal financial specialist committee. These include spousal individual retirement accounts, which let couples double up on retirement savings even if only one spouse works, and tax exemptions on estate transfers, also known as the “unlimited marital deduction.”

“It’s a step over a dollar to pick up a dime kind of thing,” Stolz said.

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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: jessica dickler
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Uber stock hits a new all-time low as shares continue to slide following $5 billion Q2 loss

Shares of Uber closed at $33.96 Wednesday, their lowest price since the stock’s debut in May. Uber shares continued to slide for the fourth straight trading day following the company’s earnings whiff. Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv. Ultimately, the company listed its shares at a nondiluted va


Shares of Uber closed at $33.96 Wednesday, their lowest price since the stock’s debut in May. Uber shares continued to slide for the fourth straight trading day following the company’s earnings whiff. Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv. Ultimately, the company listed its shares at a nondiluted va
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Uber stock hits a new all-time low as shares continue to slide following $5 billion Q2 loss

Shares of Uber closed at $33.96 Wednesday, their lowest price since the stock’s debut in May. Uber shares continued to slide for the fourth straight trading day following the company’s earnings whiff. It was the first time the shares fell below $36.

The stock was down 6.8% Wednesday, bringing its market cap to $57.6 billion, down more than $12 billion from its valuation at the end of its first trading day in May.

Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation. But even excluding the compensation, Uber’s losses amounted to about $1.3 billion, about 30% worse than the previous quarter. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv.

Analysts had already expressed skepticism about Uber’s high valuation leading up to its IPO. The company reported an adjusted EBITDA loss of $1.85 billion in 2018 and showed slowing revenue growth in its S-1 filing, but Uber reportedly sought a valuation as high as $120 billion as it mulled its public debut. Ultimately, the company listed its shares at a nondiluted valuation of $75.46 billion.

While CEO Dara Khosrowshahi characterized the second-quarter loss as a “once-in-a-lifetime” hit in an interview with CNBC’s David Faber and Jim Cramer on Friday, investors are still uncertain of Uber’s path to profitibility.

On Monday, shortly before Uber shares hit their then-lowest closing price of $37, early investor Bradley Tusk told CNBC that the company needs to dominate in more businesses than its ride-hailing and delivery services to reach profitability.

“They’ve got to be that A-to-Z for transportation,” Tusk said. “Whether you’re getting yourself to A to B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that.”

— CNBC’s Annie Palmer contributed to this report.

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WATCH: Why Uber is losing money and what it will take to become profitable


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: lauren feiner
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Treasury yields pare steep August slide as trade fears pause

Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more


Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more
Treasury yields pare steep August slide as trade fears pause Cached Page below :
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Treasury yields pare steep August slide as trade fears pause

Kraft Heinz is cratering: Stock hits all-time low after finally…

Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…

Food & Beverage

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Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: thomas franck
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Caterpillar is downgraded by Goldman on the deepening U.S.-China trade war

Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more


Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more
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Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: michael bloom, kate rooney
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Caterpillar is downgraded by Goldman on the deepening U.S.-China trade war

Kraft Heinz is cratering: Stock hits all-time low after finally…

Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…

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Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: michael bloom, kate rooney
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Salesforce acquires field-service company ClickSoftware for $1.35 billion

Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more


Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more
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Salesforce acquires field-service company ClickSoftware for $1.35 billion

Kraft Heinz is cratering: Stock hits all-time low after finally…

Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…

Food & Beverage

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Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: jordan novet
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White House to host discussion on violent online extremism – but Trump isn’t expected to attend

Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more


Kraft Heinz is cratering: Stock hits all-time low after finally…Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…Food & Beverageread more
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Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: tucker higgins
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White House to host discussion on violent online extremism – but Trump isn't expected to attend

Kraft Heinz is cratering: Stock hits all-time low after finally…

Kraft Heinz new CEO Miguel Patricio said, “The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward. We have…

Food & Beverage

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Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: tucker higgins
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European stocks close lower as Chinese yuan hits 7 against the dollar for first time in over a decade


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10-year yield hits November 2016 low as Trump stokes trade fears

The market has further to fall before the selling subsides, chart… Experts point out that while the market has dropped sharply, it still has a long way to go before a sustainable bottom can be reached. Marketsread more


The market has further to fall before the selling subsides, chart… Experts point out that while the market has dropped sharply, it still has a long way to go before a sustainable bottom can be reached. Marketsread more
10-year yield hits November 2016 low as Trump stokes trade fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
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10-year yield hits November 2016 low as Trump stokes trade fears

The market has further to fall before the selling subsides, chart…

Experts point out that while the market has dropped sharply, it still has a long way to go before a sustainable bottom can be reached.

Markets

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Dollar hits 2-month high after US growth data

The dollar climbed to two-month peaks on Friday and was on pace for a second straight weekly gain after data showed the world’s largest economy slowed at a less-than-expected pace in the second quarter. A better-than-expected U.S. gross domestic product report for the second quarter is not likely to change the Fed’s mindset, analysts said. Data showed U.S. GDP grew at a 2.1% annualized rate in the second quarter. Economists polled by Reuters had forecast GDP rising at just a 1.8% rate in the sec


The dollar climbed to two-month peaks on Friday and was on pace for a second straight weekly gain after data showed the world’s largest economy slowed at a less-than-expected pace in the second quarter. A better-than-expected U.S. gross domestic product report for the second quarter is not likely to change the Fed’s mindset, analysts said. Data showed U.S. GDP grew at a 2.1% annualized rate in the second quarter. Economists polled by Reuters had forecast GDP rising at just a 1.8% rate in the sec
Dollar hits 2-month high after US growth data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-26
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Dollar hits 2-month high after US growth data

The dollar climbed to two-month peaks on Friday and was on pace for a second straight weekly gain after data showed the world’s largest economy slowed at a less-than-expected pace in the second quarter.

The dollar’s rise was also helped by widening yield differentials between U.S. and German debt. Spreads were holding at two-month highs at 249 basis points. Investors were disappointed by a lack of policy action from the European Central Bank at a meeting on Thursday.

Their attention will now shift to a Federal Reserve meeting next week, where policymakers are expected to cut interest rates by a quarter of a percentage point.

A better-than-expected U.S. gross domestic product report for the second quarter is not likely to change the Fed’s mindset, analysts said.

Data showed U.S. GDP grew at a 2.1% annualized rate in the second quarter. The economy advanced at an unrevised 3.1% pace in the first quarter. Economists polled by Reuters had forecast GDP rising at just a 1.8% rate in the second quarter.

“You continue to see this theme that the U.S. is growing well, better than most G7 economies, consistent with dollar strength that we’re seeing on the back of this,” said Erik Nelson, currency strategist at Wells Fargo Securities in New York.

“I don’t think it changes all that much for the Fed next week. We still expect a 25 basis-point cut at the meeting,” he added.

The dollar index was up 0.23% at 98.904, after earlier hitting its highest level since late May.

The dollar index hit its high of session, right after NEC director Larry Kudlow told CNBC there would be no dollar intervention.

The dollar rose by 0.05% right after his comment but has erased that gain.

“It tells me the market didn’t believe there was really going to be intervention in the first place. Nobody that wrote about it even thought it was imminent,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Chandler was referring to the round of Wall Street research notes, written after President Donald Trump blasted Europe and China for currency manipulation on July 3 and said maybe the U.S. should “match” that.

The greenback was little changed against the yen at 108.66 yen.

Steve Blitz, chief U.S. economist at TS Lombard, believes that with the GDP data, Fed Chairman Jerome Powell would have a hard time convincing the hawks on the Federal Open Market Committee of the need for a quick 50 basis-point cut.

“So here is the Fed, faced with overall growth at trend created by the combination of a slowing business sector yet still strong consumption a function of stable if slower employment growth and a strong stock market,” Blitz said.

In other currencies, the euro was down 0.2% at $1.1127, recovering from a two-month low of $1.1102 after the ECB decision on Thursday.

For the week, the single currency is down 0.8%. After the ECB session, President Mario Draghi indicated the bank was prepared to cut rates at its next meeting, in September, and consider other options for easing.

Sterling, meanwhile, slipped 0.5% to $1.2386 and was on course for a 0.6% weekly loss. Cable has stabilized since Boris Johnson became Britain’s new prime minister, but uncertainty remains about the country’s negotiations to leave the European Union.

— CNBC’s Patti Domm contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-26
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