A third of middle-class adults can’t afford to pay for a $400 emergency

“The majority of middle-income households thus do not have sufficient liquid savings to weather a typical material financial disruption,” like a temporary job loss or illness, said Brainard. Only around 25% of middle-class households have enough savings to cover six months of expenses, the amount that financial advisers typically advise people to keep on hand in case of emergency. Financial security, Brainard said, is an important marker of middle-class living. “In contrast, the wealth of middle


“The majority of middle-income households thus do not have sufficient liquid savings to weather a typical material financial disruption,” like a temporary job loss or illness, said Brainard. Only around 25% of middle-class households have enough savings to cover six months of expenses, the amount that financial advisers typically advise people to keep on hand in case of emergency. Financial security, Brainard said, is an important marker of middle-class living. “In contrast, the wealth of middle
A third of middle-class adults can’t afford to pay for a $400 emergency Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: alicia adamczyk
Keywords: news, cnbc, companies, cant, 400, pay, middleincome, wealth, financial, brainard, families, adults, middle, income, middleclass, afford, households, emergency, savings


A third of middle-class adults can't afford to pay for a $400 emergency

One-third of middle-income adults don’t have enough savings to cover an unexpected $400 expense without selling something or borrowing money, Fed Governor Lael Brainard said at a conference in Washington D.C. earlier this month. Brainard spoke about the results of the central bank’s 2018 Survey of Consumer Finances, which found that “even modest unexpected expenses” could upend the finances of lots of families considered middle-class, defined here as those earning between $40,000 and $85,000 in 2018. “The majority of middle-income households thus do not have sufficient liquid savings to weather a typical material financial disruption,” like a temporary job loss or illness, said Brainard. Only around 25% of middle-class households have enough savings to cover six months of expenses, the amount that financial advisers typically advise people to keep on hand in case of emergency.

Financial security, Brainard said, is an important marker of middle-class living. That so many households are having trouble saving for even minor crises is bad news for the economy. “Having a strong middle class implies that families with average incomes have the purchasing power to consume and the savings to invest,” said Brainard. “So a strong middle class is often seen as a cornerstone of a vibrant economy and, beyond that, a resilient democracy.” For now, experts generally think that being middle-income is interchangeable with being middle-class, but Brainard notes that soon that might no longer be true: The rising costs of housing, health care and education “may be making it more difficult for middle-income families to achieve middle-class financial security.”

The middle class hasn’t recovered from the Great Recession

The Fed’s report also highlights the growing income disparity between the richest Americans and everyone else. The top 10% of households by income in the country are now 13 times wealthier than those in the middle-income group, on average, the report finds. In 1989, the top 10% was only seven times wealthier. “The wealth of the top 10% of households is 19% higher than before the recession, even after factoring in the decline in stock prices at the end of last year,” said Brainard. “In contrast, the wealth of middle-income families still has not returned to its pre-crisis level, and lower-income families have a wealth shortfall of 16%.”

The wealth of middle-income families still has not returned to its pre-crisis level. Lael Brainard Fed Governor

How to build up your emergency savings

How much you have stashed away will depend on a variety of factors, including income, where you live, debt obligations and more. But if you have no savings, experts at Americasaves.org recommend you start by aiming to put away $500. Reaching that goal can then inspire you to save more. Jeremy Straub, CEO of Coastal Wealth, told CNBC that people should try to save at least 5% to 10% of their paychecks until they reach the three-to-six months of expenses typically advised by financial experts. Set up an automatic transfer to your savings account to make the process easy.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: alicia adamczyk
Keywords: news, cnbc, companies, cant, 400, pay, middleincome, wealth, financial, brainard, families, adults, middle, income, middleclass, afford, households, emergency, savings


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

8 affordable U.S. cities for the middle class to buy a home

For the middle class — those who earn between two-thirds and double the median income in their area — the ability to afford a home can depend largely on where you live. But it’s also determined by which end of the middle class spectrum you fall in. To determine the most affordable cities for middle class families, financial website LendingTree compared the typical monthly payments for median-priced homes in the 50 largest metro areas in the U.S. to how much middle income buyers could afford to p


For the middle class — those who earn between two-thirds and double the median income in their area — the ability to afford a home can depend largely on where you live. But it’s also determined by which end of the middle class spectrum you fall in. To determine the most affordable cities for middle class families, financial website LendingTree compared the typical monthly payments for median-priced homes in the 50 largest metro areas in the U.S. to how much middle income buyers could afford to p
8 affordable U.S. cities for the middle class to buy a home Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: shawn m carter, davel, getty images
Keywords: news, cnbc, companies, affordable, lendingtree, twothirds, middle, buy, cities, median, data, spectrum, class, double, income


8 affordable U.S. cities for the middle class to buy a home

For the middle class — those who earn between two-thirds and double the median income in their area — the ability to afford a home can depend largely on where you live. But it’s also determined by which end of the middle class spectrum you fall in.

To determine the most affordable cities for middle class families, financial website LendingTree compared the typical monthly payments for median-priced homes in the 50 largest metro areas in the U.S. to how much middle income buyers could afford to pay without spending more than 28% of their income on housing. The data assumes that homeowners will make a 20% down payment and secure a loan rate of around 4.6%.

Because the American middle class includes such a broad spectrum of earners, LendingTree also broke the results down into three groups: lower-middle class, or those who make two-thirds of the median income; middle-middle class, who make exactly the median income; and upper-middle class, who make double the median income.

Based on that data, here are the three most affordable metros for each cohort of the middle class:


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: shawn m carter, davel, getty images
Keywords: news, cnbc, companies, affordable, lendingtree, twothirds, middle, buy, cities, median, data, spectrum, class, double, income


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s how much space you can afford to rent on a normal person’s income in DC

The amount of space you can afford to rent on a normal person’s income can vary depending on where you live, even in neighboring cities. In Washington, D.C., you may feel cramped squeezing into a tiny apartment, while in a nearby place like Baltimore, Maryland, or Arlington, Virginia, you’re likely to get more square feet for the same price. The researchers adjusted each city’s median income for inflation to reflect 2019 values, then determined how many square feet you could afford if you don’t


The amount of space you can afford to rent on a normal person’s income can vary depending on where you live, even in neighboring cities. In Washington, D.C., you may feel cramped squeezing into a tiny apartment, while in a nearby place like Baltimore, Maryland, or Arlington, Virginia, you’re likely to get more square feet for the same price. The researchers adjusted each city’s median income for inflation to reflect 2019 values, then determined how many square feet you could afford if you don’t
Here’s how much space you can afford to rent on a normal person’s income in DC Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: shawn m carter
Keywords: news, cnbc, companies, dc, normal, square, afford, baltimore, rent, space, cities, persons, feet, median, heres, income


Here's how much space you can afford to rent on a normal person's income in DC

The amount of space you can afford to rent on a normal person’s income can vary depending on where you live, even in neighboring cities. In Washington, D.C., you may feel cramped squeezing into a tiny apartment, while in a nearby place like Baltimore, Maryland, or Arlington, Virginia, you’re likely to get more square feet for the same price.

To determine how much space you can afford across the country, real-estate website RENTCafé compared the median monthly household income for renters to the average rent in the 100 most populous U.S. cities, using data from the U.S. Census Bureau and Yardi Matrix.

The researchers adjusted each city’s median income for inflation to reflect 2019 values, then determined how many square feet you could afford if you don’t spend more than the expert-advised 30% of your income on rent. Of the 100 places it considered, “only 14 cities offer a comfortable life while living within your means,” the report says.

Here’s what you could afford on a median income in D.C., as well as in Baltimore and Arlington, which are each less than an hour away from the nation’s capital.


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: shawn m carter
Keywords: news, cnbc, companies, dc, normal, square, afford, baltimore, rent, space, cities, persons, feet, median, heres, income


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

AIG earnings Q1 2019

Insurer American International Group reported first-quarter earnings that trounced Wall Street estimates on Monday, as its general insurance business posted its first underwriting profit since the financial crisis. Shares of the company rose more than 6% after Chief Executive Officer Brian Duperreault said he expects the company to record an underwriting profit for the full year. The general insurance unit’s underwriting income, which is the difference between premiums an insurer collects on pol


Insurer American International Group reported first-quarter earnings that trounced Wall Street estimates on Monday, as its general insurance business posted its first underwriting profit since the financial crisis. Shares of the company rose more than 6% after Chief Executive Officer Brian Duperreault said he expects the company to record an underwriting profit for the full year. The general insurance unit’s underwriting income, which is the difference between premiums an insurer collects on pol
AIG earnings Q1 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: lauren hirsch, michael sheetz
Keywords: news, cnbc, companies, insurance, underwriting, income, business, profit, q1, 2019, earnings, rose, insurer, company, aig, general, million


AIG earnings Q1 2019

Insurer American International Group reported first-quarter earnings that trounced Wall Street estimates on Monday, as its general insurance business posted its first underwriting profit since the financial crisis.

Shares of the company rose more than 6% after Chief Executive Officer Brian Duperreault said he expects the company to record an underwriting profit for the full year.

The general insurance unit’s underwriting income, which is the difference between premiums an insurer collects on policies and claims it pays out, was $179 million in the latest quarter, compared with an underwriting loss of $251 million a year earlier.

Adjusted income from the business rose more than two-fold to $1.27 billion.


Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: lauren hirsch, michael sheetz
Keywords: news, cnbc, companies, insurance, underwriting, income, business, profit, q1, 2019, earnings, rose, insurer, company, aig, general, million


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

SocGen first-quarter profit dives 26% amid choppy market conditions

Societe Generale first-quarter profit fell 26% over the first three months of the year, as challenging market conditions continued to hobble Europe’s banks. SocGen, France’s third-largest bank, posted net income of 631 million euros ($705 million) for the first three months of the year. That compared with net income of 850 million euros a year earlier and 624 million euros in the final three months of 2018. Analysts polled by Reuters had expected first-quarter profit to come in around 637 millio


Societe Generale first-quarter profit fell 26% over the first three months of the year, as challenging market conditions continued to hobble Europe’s banks. SocGen, France’s third-largest bank, posted net income of 631 million euros ($705 million) for the first three months of the year. That compared with net income of 850 million euros a year earlier and 624 million euros in the final three months of 2018. Analysts polled by Reuters had expected first-quarter profit to come in around 637 millio
SocGen first-quarter profit dives 26% amid choppy market conditions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: sam meredith
Keywords: news, cnbc, companies, euros, market, net, dives, million, conditions, income, profit, choppy, amid, 26, banks, months, socgen, ratio, stood, firstquarter


SocGen first-quarter profit dives 26% amid choppy market conditions

Societe Generale first-quarter profit fell 26% over the first three months of the year, as challenging market conditions continued to hobble Europe’s banks.

SocGen, France’s third-largest bank, posted net income of 631 million euros ($705 million) for the first three months of the year. That compared with net income of 850 million euros a year earlier and 624 million euros in the final three months of 2018.

Analysts polled by Reuters had expected first-quarter profit to come in around 637 million euros.

Shares of SocGen were up more than 2% during early morning deals.

Here are some of the key takeaways:

First-quarter net income came in at 631 million euros, down from 850 million euros a year ago.

Revenues came in at 6.2 billion euros, down more than 1% when compared to the same three-month period in 2018.

The bank’s core capital ratio stood at 11.7% at the end of the first quarter.

“I am happy with the beginning of the year,” Frederic Oudea, CEO of SocGen, told CNBC’s Julianna Tatelbaum on Friday.

“I must say the very good news is on the capital ratio and we are showing that yes, we can definitely address this issue,” Oudea said.

Its common equity tier 1 ratio, which indicates a bank’s strength, stood at 11.7% at the end of the first quarter.

A protracted period of low interest rates has curtailed returns for retail banking in recent years, prompting SocGen — as well as other big European banks — to rely on the more volatile earnings from corporate and investment banking, with mixed results.


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: sam meredith
Keywords: news, cnbc, companies, euros, market, net, dives, million, conditions, income, profit, choppy, amid, 26, banks, months, socgen, ratio, stood, firstquarter


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Why I’m cashing out of San Francisco’s tech IPO boom and retiring to Hawaii at 42

My wife and I moved to San Francisco in 2001, and after 18 years, we finally decided we’ve had enough. San Francisco has its perks, but once we became parents in 2017, our outlook started to fade. After Uber’s IPO, we believe it’ll be the biggest catalyst for an uptick in San Francisco real estate demand given its estimated $100 billion market capitalization. Real estate arbitrage to the rescueCap rates in San Francisco are roughly 3% to 3.5%. Although $3,500 a month sounds like a lot, it’s stil


My wife and I moved to San Francisco in 2001, and after 18 years, we finally decided we’ve had enough. San Francisco has its perks, but once we became parents in 2017, our outlook started to fade. After Uber’s IPO, we believe it’ll be the biggest catalyst for an uptick in San Francisco real estate demand given its estimated $100 billion market capitalization. Real estate arbitrage to the rescueCap rates in San Francisco are roughly 3% to 3.5%. Although $3,500 a month sounds like a lot, it’s stil
Why I’m cashing out of San Francisco’s tech IPO boom and retiring to Hawaii at 42 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: sam dogen
Keywords: news, cnbc, companies, property, estate, im, cashing, 42, real, wife, boom, retiring, hawaii, franciscos, sell, tech, techies, income, francisco, ipo, san


Why I'm cashing out of San Francisco's tech IPO boom and retiring to Hawaii at 42

My wife and I moved to San Francisco in 2001, and after 18 years, we finally decided we’ve had enough. Our plan now is to cash out of the tech IPO boom and move to Hawaii to semi-retire in our early 40s. San Francisco has its perks, but once we became parents in 2017, our outlook started to fade. For starters, San Francisco has the lowest percentage of kids in the U.S., which means fewer family-friendly places, fewer first-time parents to interact with and fewer kids for our son to play with. The public school system starting in kindergarten is based on a lottery system, so even if you pay property taxes, your child is not guaranteed a spot in your neighborhood schools. Most parents are forced to pay big bucks to send their kids to private school, but even paying $30,000 or more doesn’t guarantee your child admission into the top-rated private schools. We feel a tremendous burden to keep working so we can earn higher salaries only to keep up with the city’s rising costs. That said, the only way to break free from this trap is to sell during the tech IPO boom.

Our priority is to reduce our ownership burden in California by as much as possible. While my wife and I aren’t “techies,” we do own several assets that techies may want to buy. A two-bedroom, two-bathroom park view condo in Pacific Heights: In 2003, at 26, I purchased my first property for $580,500. To come up with the down payment, I had saved 50% of my salary and 100% of my bonus each year from ages 22 to 26. My base ranged from $40,000 to $80,000 during this time period.

A four-bedroom, three-bathroom home in the Marina District: In 2005, my girlfriend and I rented out our Pacific Heights property and bought a single family home for $1.5 million. It took everything I had to come up with the $304,000 down payment and closing costs. I actually had to get a bridge loan from my grandfather for two months because the house was for sale in December, and I wasn’t going to get paid my bonus until February.

A two-bedroom, two-bathroom vacation home in Lake Tahoe: In 2007, we purchased a Squaw Valley vacation property for $715,000. I thought I was getting a good deal because the seller had purchased it for $820,000 a year prior. Unfortunately, over the next several years, the property lost half its value due to the housing crisis. Our goal is to sell the properties during the tech IPO boom. So far, Lyft, Pinterest and Zoom have all successfully gone public. After Uber’s IPO, we believe it’ll be the biggest catalyst for an uptick in San Francisco real estate demand given its estimated $100 billion market capitalization.

While my wife and I aren’t ‘techies,’ we do own several assets that techies may want to buy.

If we’re able to sell to one of the newly minted tech millionaires once their six-month lockup period is over, we would reinvest the proceeds into various passive income investments such as dividend stocks, short-term treasury bonds, venture debt and private equity.

Real estate arbitrage to the rescue

Cap rates in San Francisco are roughly 3% to 3.5%. Owning investment property in San Francisco is mostly about capital appreciation, not income generation. One could easily earn a risk-free 2.5% per year by investing in three-month treasury bonds today. Here’s our strategy: Sell our Lake Tahoe (estimated value: $450,000) and Pacific Heights (estimated value: $1,300,000) properties. After paying fees and taxes, we should have about $1,500,000 in net proceeds to reinvest.

Reinvest 50% of the proceeds in AA-rated Hawaii municipal bonds once we move there. This will generate a tax-free yield of $22,500 (or 3%) per year in tax-free income.

Invest the other $750,000 in real estate crowdfunding and and public REITs to take advantage of much lower valuations and much higher cap rates in the heartland of America. The heartland is seeing an influx of residents from expensive coastal city residents who realize they no longer need to be stuck paying $4,500 per month for rent or $1,500,000 for a median-priced home. With a target 10% annual return due to much higher cap rates in heartland real estate, I expect the $750,000 invested in real estate crowdfunding to generate roughly $75,000 a year in gross income. In other words, instead of generating only $50,000 a year in gross income a year from my existing San Francisco and Lake Tahoe properties, I could generate an equivalent of roughly $105,000 a year in gross income from the combination of municipal bonds and real estate crowdfunding. A 6% blended return on the gross capital base with no maintenance or tenant issues sounds much better to me. As of now, our retirement income currently stands as follows. By selling one or two of our rental properties, we hope to simplify life and boost our retirement income further.

Honolulu over San Francisco

My goal is to retire sometime this year, right after I hit my 42nd birthday. My parents, currently living in Honolulu, are in their 70s. If we don’t move now, I know I’ll regret not spending more time with them later on. When we move to Honolulu, I plan to continue running Financial Samurai, the personal finance site I started in 2009. My wife and I will also be working on the third edition of our severance negotiation book, “How To Engineer Your Layoff: Make a Small Fortune by Saying Goodbye.”

Although $3,500 a month sounds like a lot, it’s still $2,000 (or 40%) less than what we spend on housing here in San Francisco.


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: sam dogen
Keywords: news, cnbc, companies, property, estate, im, cashing, 42, real, wife, boom, retiring, hawaii, franciscos, sell, tech, techies, income, francisco, ipo, san


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s how much money you need to make to be in the top 5% in Hawaii

To be a part of the top 5% of earners in an expensive state like Hawaii, where taxes and real-estate costs are among the highest in the country, you’ll need to make a lot of money. To determine the average income residents earn in each state and Washington, D.C., financial website GOBankingRates analyzed data from the U.S. Census Bureau’s 2017 American Community Survey and the Economic Policy Institute’s income inequality report. Here’s how much you have to earn to be in the top 5% in Hawaii:Ave


To be a part of the top 5% of earners in an expensive state like Hawaii, where taxes and real-estate costs are among the highest in the country, you’ll need to make a lot of money. To determine the average income residents earn in each state and Washington, D.C., financial website GOBankingRates analyzed data from the U.S. Census Bureau’s 2017 American Community Survey and the Economic Policy Institute’s income inequality report. Here’s how much you have to earn to be in the top 5% in Hawaii:Ave
Here’s how much money you need to make to be in the top 5% in Hawaii Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: shawn m carter
Keywords: news, cnbc, companies, money, state, hawaii, data, washington, heres, income, earn, york, website, dc, youll, need


Here's how much money you need to make to be in the top 5% in Hawaii

To be a part of the top 5% of earners in an expensive state like Hawaii, where taxes and real-estate costs are among the highest in the country, you’ll need to make a lot of money.

To determine the average income residents earn in each state and Washington, D.C., financial website GOBankingRates analyzed data from the U.S. Census Bureau’s 2017 American Community Survey and the Economic Policy Institute’s income inequality report.

Here’s how much you have to earn to be in the top 5% in Hawaii:

Average top 5% annual income: $378,854

Minimum threshold needed to make the top 5%: $238,820

There are eight places — including notoriously pricey locations like California, D.C., and New York — that require at least $250,000 in income to crack the top 5%, according to the data. Just outside of that, Hawaii comes in at No. 9.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: shawn m carter
Keywords: news, cnbc, companies, money, state, hawaii, data, washington, heres, income, earn, york, website, dc, youll, need


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Personal income March 2019

At the same time, consumer spending surged amid a jump in expenditures on motor vehicles and health care. “The inflation rate continues to slip lower and lower,” Kudlow told CNBC’s “Squawk on the Street.” “Even according to the Fed’s own spokespeople, from the chairman on down, that could open the door to a target rate reduction.” While the price index fell, consumer spending surged to its highest level in 9½ years in March. The consumer spending numbers are important as they suggest higher cons


At the same time, consumer spending surged amid a jump in expenditures on motor vehicles and health care. “The inflation rate continues to slip lower and lower,” Kudlow told CNBC’s “Squawk on the Street.” “Even according to the Fed’s own spokespeople, from the chairman on down, that could open the door to a target rate reduction.” While the price index fell, consumer spending surged to its highest level in 9½ years in March. The consumer spending numbers are important as they suggest higher cons
Personal income March 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: jeff cox, fred imbert
Keywords: news, cnbc, companies, rate, personal, spending, income, headline, fed, rose, target, core, 2019, inflation, showed, consumer


Personal income March 2019

The Federal Reserve’s preferred inflation gauge showed no change in March and remained well below the central bank’s target, a government report Monday showed. At the same time, consumer spending surged amid a jump in expenditures on motor vehicles and health care.

The core personal consumption expenditures index, which strips out volatile food and energy prices, was flat for the month and up 1.6% year over year. The headline number rose 0.2% for a 1.5% increase over the year.

February’s results were largely the same.

Get the market reaction here.

The core and headline measures rose just 0.1% for that month, while the core was up 1.7% on the year and the headline rate increased 1.3%.

The PCE deflator is the Fed’s key inflation metric. The central bank considers 2% a healthy level for price stability but has failed to hit the target for most of the past decade or so.

Fed officials have said they expect to hold interest rates steady for the rest of the year, due in part to a low inflation rate.

Markets are assigning about a 65% chance of a rate cut by the end of the year, though individual Fed members have said they see little chance of any loosening in policy ahead.

The tame inflation numbers “will reinforce the concerns of several officials that inflation is still too low to be consistent with the 2% target and, if we’re right in expecting activity growth to slow over the course of this year, makes it all the more likely that the Fed will be seriously contemplating interest rate cuts before too long,” Andrew Hunter, senior U.S. economist at Capital Economics, said in a note.

Deciding the future rate path got a little more complicated last week when a government reported showed that GDP grew by a much stronger-than-expected 3.2% in the first quarter. Despite the strong economic growth, the White House continues to push for rate cuts.

Larry Kudlow, director of the National Economic Council, on Friday repeated his contention that a 50 basis point reduction in the Fed’s benchmark interest rate is warranted. The federal funds rate is now targeted at 2.25% to 2.5%.

“The inflation rate continues to slip lower and lower,” Kudlow told CNBC’s “Squawk on the Street.” “Even according to the Fed’s own spokespeople, from the chairman on down, that could open the door to a target rate reduction.”

Later this week, the policymaking Federal Open Market Committee holds its two-day meeting that will conclude Wednesday. Markets expect no change in rates, though Fed Chairman Jerome Powell’s news conference afterward could provide future clues on monetary policy.

In their most recent economic projections, Fed officials said they expect core inflation to hit 2% for the full year in 2019 and headline PCE to hit 1.8%.

“Bottom line, if income growth, while rising at a good pace, is no longer accelerating, it is more imperative than ever in this cycle that inflation remains low. We need higher REAL wages and trying to stimulate higher inflation will do the exact opposite,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

While the price index fell, consumer spending surged to its highest level in 9½ years in March. Consumer spending rose 0.9% overall and 0.7% when adjusted for inflation. The consumer spending numbers are important as they suggest higher consumption numbers on the way for the second quarter.

The Commerce Department has been releasing two months of data at a time as it catches up from the government shutdown that ended Jan. 25.


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: jeff cox, fred imbert
Keywords: news, cnbc, companies, rate, personal, spending, income, headline, fed, rose, target, core, 2019, inflation, showed, consumer


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Warren Buffett: This is the best way to put cash in the pockets of people who need it

But Buffett has an opinion on how to put more cash in the hands of Americans who need it the most: He recommends expanding the Earned Income Tax Credit. “The Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer, in an interview published Monday. The Earned Income Tax Credit (EITC) is designed to “benefit for working people with


But Buffett has an opinion on how to put more cash in the hands of Americans who need it the most: He recommends expanding the Earned Income Tax Credit. “The Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer, in an interview published Monday. The Earned Income Tax Credit (EITC) is designed to “benefit for working people with
Warren Buffett: This is the best way to put cash in the pockets of people who need it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: catherine clifford, david a grogan
Keywords: news, cnbc, companies, person, income, eitc, children, buffett, earned, need, tax, according, way, warren, working, pockets, best, credit, cash


Warren Buffett: This is the best way to put cash in the pockets of people who need it

Berkshire Hathaway chairman Warren Buffett has plenty of money. The so-called “Oracle of Omaha” — a nod to both his hometown and his prowess as an investor — is worth $86 billion on Thursday, according to Forbes.

And that’s a whole lot more than most people have. In fact, if you add up the fortunes of Amazon’sJeff Bezos, Microsoft’s Bill Gates and Buffett, those three billionaires have more wealth than the entire poorest half of the population in the United States, according to an October report from progressive Washington, D.C.-based think tank Institute for Policy Studies.

But Buffett has an opinion on how to put more cash in the hands of Americans who need it the most: He recommends expanding the Earned Income Tax Credit.

“The Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer, in an interview published Monday.

The Earned Income Tax Credit (EITC) is designed to “benefit for working people with low to moderate income,” according to the U.S. Internal Revenue Service. “EITC reduces the amount of tax you owe and may give you a refund.”

Various criteria have to be met for someone to benefit from the EITC, including earning income from working or owning or running a business or a farm and having no more than $3,500 in investment income for the tax year. The full details on the current requirements for the EITC vary depending on whether a person is single or married and how many children are claimed, according to the U.S. Internal Revenue Service.

For 2019, the maximum amount of credit a person can receive via the EITC ranges from $529 (with no qualifying children) and $6,557 (with three or more qualifying children), according to the IRS. In a 2015 Wall Street Journal op-ed Buffett suggested increasing dollar amounts for the credit, especially for those who earn the least. He also suggested switching from an annual payment to monthly installments, among other changes.

If you are “just a good citizen, raise nice kids, help in the neighborhood and everything else, but you don’t have market-related skills,” you should still be able to afford to live, Buffett tells Serwer, pointing out that the United States government has access to enough resources to provide for everyone. Case in point, says Buffett: the per person gross domestic product in the U.S. is close to $60,000.


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: catherine clifford, david a grogan
Keywords: news, cnbc, companies, person, income, eitc, children, buffett, earned, need, tax, according, way, warren, working, pockets, best, credit, cash


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post