New parents shouldn’t count on penalty-free 401(k) withdrawals just yet

But it may be months before 401(k) plan sponsors are able to offer these benefits — and for some families that may be too late. It also gives new parents one year to take advantage of penalty-free baby withdrawals — up to $10,000 for couples with separate retirement accounts. Change takes timeIf you have an IRA, it may be easier to take these baby withdrawals right away. In some cases, the employer will need to amend their 401(k) plan, a process and time frame that will vary by company. But ther


But it may be months before 401(k) plan sponsors are able to offer these benefits — and for some families that may be too late.
It also gives new parents one year to take advantage of penalty-free baby withdrawals — up to $10,000 for couples with separate retirement accounts.
Change takes timeIf you have an IRA, it may be easier to take these baby withdrawals right away.
In some cases, the employer will need to amend their 401(k) plan, a process and time frame that will vary by company.
But ther
New parents shouldn’t count on penalty-free 401(k) withdrawals just yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: megan leonhardt
Keywords: news, cnbc, companies, shouldnt, parents, penaltyfree, money, withdrawals, baby, taxes, 401k, providers, withdrawal, plan, retirement, need, count


New parents shouldn't count on penalty-free 401(k) withdrawals just yet

In an effort to help new parents successfully navigate the increasing costs of raising a family, last month lawmakers signed off on new rules that will allow eligible Americans to tap into their retirement savings. But it may be months before 401(k) plan sponsors are able to offer these benefits — and for some families that may be too late. The rule, part of the comprehensive retirement legislation known as the SECURE Act, gives Americans who’ve had a baby or adopted a child within the past year the option to take a withdrawal of up to $5,000 from their retirement savings, including 401(k)s or individual retirement accounts, without the typical 10% penalty. The changes sparked James Bednar’s interest: He has a baby and feels the financial squeeze of trying to manage the cost of having kids. “I don’t know that I necessarily need the money, but my son is 5 months old, and it’s expensive to have kids these days, especially up here in the Northeast,” Bednar, who lives in New Jersey, tells CNBC Make It. The 43-year-old father of two called up his 401(k) provider, Principal, to get more information and ask about the steps required to start a withdrawal. That’s when he learned that while the law had gone into effect, he wasn’t going to be able to take advantage of this benefit for a while, if ever. Principal says the company needs more guidance from regulators before making this 401(k) benefit available to the public. “Principal is thrilled about the passing of the SECURE Act and what it means for financial security for Americans,” the company said in a statement, adding that “there are many details to work through with such sweeping legislation, and this particular provision has many questions that will have to be answered by regulators.” And Principal is far from the only company struggling to accommodate these new rules. CNBC Make It spoke with nearly half a dozen major plan providers, including Charles Schwab, Fidelity and Vanguard, and they all confirmed they were not yet able to offer these so-called “baby withdrawals” to eligible 401(k) investors. “I was taken aback a bit,” Bednar says. “I read the law, and it seemed very clear cut and straightforward to me.” But it turns out, it’s not that simple.

New rules of the road to retirement

Late in December, President Trump signed a $1.4 trillion spending deal that, among other provisions, contained the SECURE Act. The legislation introduced a number of overhauls to retirement accounts, including raising the age when people need to take minimum withdrawals as well as giving small businesses the ability to join together to participate in multi-employer 401(k) plans. It also gives new parents one year to take advantage of penalty-free baby withdrawals — up to $10,000 for couples with separate retirement accounts. While you can opt to repay the withdrawal amount, this is not a loan and you’re not required to adhere to a strict repayment process.

I don’t know that I necessarily need the money, but my son is 5 months old, and it’s expensive to have kids these days, especially up here in the Northeast. James Bednar

Until now, you could only take penalty-free withdrawals from your 401(k) before 59½ if you had education expenses, bought a home for the first time, incurred massive medical debts or were ordered by a court to provide alimony or child support. For other circumstances, you had to pay a 10% early withdrawal penalty, plus taxes on the funds you withdrew. According to the new law, these changes affect any withdrawals (also known as distributions) made after December 31, 2019, according to the National Association of Plan Advisors.

Change takes time

If you have an IRA, it may be easier to take these baby withdrawals right away. Currently, Charles Schwab and Vanguard both tell CNBC Make It that they are already able to accommodate requests for IRA distributions. “Looking at the birth and adoption provision specifically, we made this withdrawal available to IRA account owners, obviously assuming they meet the requirements,” says Shannon Nutter, head of participant strategy and development for Vanguard’s institutional business. But if you’re interested in taking money from your 401(k), it will likely be months, potentially up to a year, before you’re able to take advantage of the new benefit. And some people will never get to use the benefit. Retirement plan providers read the new law’s withdrawal exemption as an optional plan feature, which means that the decision whether to include this benefit rests with the employer. It’s similar to existing rules allowing you to take a loan from your 401(k) or a financial hardship withdrawal. Roughly 15% of 401(k) plans don’t allow account holders to take distributions when they are experiencing a financial hardship. In some cases, the employer will need to amend their 401(k) plan, a process and time frame that will vary by company. “Many employers only meet quarterly, semi-annually or annually to make design changes to their retirement plan. In addition, we expect employers will want to educate themselves on the pros and cons of offering this new distribution type, which may delay their employees’ ability to receive a qualified birth/adoption distribution,” Schwab spokesman Mike Peterson tells CNBC Make It. Beyond getting employer buy-in, plan providers will also need to set up back-end systems to track which plans are allowing these types of withdrawals, figure out the best ways to collect documentation such as birth certificates or adoption paperwork from consumers and educate their customer reps on how to answer questions. “All of that takes time,” says Michael Hadley, a lawyer with the D.C.-based law firm Davis & Harman. “If you want to take a distribution from your plan, the plan, and its service provider, can’t just say ‘OK, you can have it.’ It’s gotta be documented.”

Individual companies, as well as trade groups such as Society of Professional Administrators and Recordkeepers (SPARK) have sent letters to U.S. Department of the Treasury and the IRS asking them to weigh in on what information exactly companies need to be collecting from consumers and what tax laws apply. As it stands, normally the IRS requires plan providers withhold 20% of any withdrawal for taxes, since the money you contribute to a 401(k) is taken out of your paycheck before taxes are applied. So if you take out $1,000, you’ll only get about $800 right away, and that’s assuming you don’t have to pay the 10% early withdrawal penalty. But there’s no mention in the new law whether this 20% withholding rule applies to baby withdrawals. If it does, parents will really only receive up to $4,000 and plan providers will need to withhold the rest for taxes. This just one example of the many questions plan providers are putting to regulators. In fact, Hadley who works with SPARK on legislative and regulatory changes, says that of all the provisions in the SECURE Act, the baby withdrawal change is the one that has the biggest unanswered questions. Plan providers are “in unprecedented waters,” Hadley says, adding that typically there’s a long window, at least six months, between when a law is passed and when it goes into effect, giving companies time to get the details sorted out. This time, that implementation period was just five business days during a holiday week. Typically a major change to create a new plan feature “will take six months to a year, and often that clock starts once we have the answers to all the questions we really need, ” Hadley says.

Other options if you need some cash

If you are a new parent who is experiencing some financial hurdles, check with your provider to see if you can take a baby withdrawal from an IRA now, if you already set up and deposited funds into this type of account. With a Roth IRA, you may not even need to claim a baby withdrawal to take out money. Within these accounts, you can withdraw any money you’ve invested at any time, without taxes or penalties. And after your account has been open at least five years (or you’ve reached the age 59½), you can withdraw any investment earnings without incurring the typical 10% penalty. If you only have a 401(k) and are facing major debts, you can check to see if your plan allows hardship withdrawals. Keep in mind that these are classified as emergency situations that pose “an immediate and heavy financial need of the employee.” You will have to pay taxes on this money, taxed as ordinary income, and you may also have to pay the 10% penalty. There’s also the option to take a 401(k) loan. These loans are not taxed, but you can only take up to half of your vested account balance — but not more than $50,000, no matter how high your balance. And all loans need to be repaid within five years with interest (this is set by your plan, based on the prime rate, which is currently about 4.75%), or you’ll be hit with taxes. You could also apply for a personal loan from your bank, which is generally used to consolidate debt or make a big purchase. On average, those with credit scores below 680 will be paying higher interest rates for a personal loan than the average credit card APR of 16.97%, according to an analysis by loan marketplace Credible. For personal loans, the rate not only depends on your credit, but also on the length of the loan, as shorter loans tend to have lower APRs. If you feel that paying off your debt will take longer than three years, you may be subject to a higher rate, Credible finds.

Think twice before using retirement money


Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: megan leonhardt
Keywords: news, cnbc, companies, shouldnt, parents, penaltyfree, money, withdrawals, baby, taxes, 401k, providers, withdrawal, plan, retirement, need, count


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61% of Americans say there’s too much economic inequality in the U.S.

Economic inequality in the U.S. is rising. About 78% of those who identify as Democrats say there’s too much economic inequality, while about 41% of Republicans agree, according to the Pew Research Center survey. Younger Americans are also more likely to agree: 71% of those 18 to 29 say there is too much economic inequality in the U.S. today, compared to just 52% of those over 65. Among Republicans, 58% of younger voters in the party more likely to say there’s too much economic inequality compar


Economic inequality in the U.S. is rising.
About 78% of those who identify as Democrats say there’s too much economic inequality, while about 41% of Republicans agree, according to the Pew Research Center survey.
Younger Americans are also more likely to agree: 71% of those 18 to 29 say there is too much economic inequality in the U.S. today, compared to just 52% of those over 65.
Among Republicans, 58% of younger voters in the party more likely to say there’s too much economic inequality compar
61% of Americans say there’s too much economic inequality in the U.S. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-09  Authors: megan leonhardt
Keywords: news, cnbc, companies, democrats, theres, republicans, earners, inequality, americans, say, pew, likely, agree, economic


61% of Americans say there's too much economic inequality in the U.S.

A majority of Americans agree that the unequal distribution of income and opportunity in the U.S. has gotten to be too much.

Economic inequality in the U.S. is rising. It has increased exponentially since the 1980s, according to a new Pew Research Center report on the topic. In 1980, the households that ranked in the top 10% of earners had about nine times the income as those in the bottom 10% of earners. In 2018, the top 10% of earners had about 12.6 times more than households at the bottom. That’s a 39% increase, according to Pew.

Those demographic changes have become a rallying cry for several politicians seeking the Democratic presidential nomination, so it’s no surprise that more Democrats see this as a major issue than Republicans. About 78% of those who identify as Democrats say there’s too much economic inequality, while about 41% of Republicans agree, according to the Pew Research Center survey.

Younger Americans are also more likely to agree: 71% of those 18 to 29 say there is too much economic inequality in the U.S. today, compared to just 52% of those over 65. It’s worth noting, however, that millennials and Gen Z also are more likely to identify as Democrats, Ruth Igienik, a senior researcher at Pew, tells CNBC Make It.

Among Republicans, 58% of younger voters in the party more likely to say there’s too much economic inequality compared to just 28% of older members. As expected, there’s not a significant difference in viewpoints among Democrats when broken down by age, Igienik adds.


Company: cnbc, Activity: cnbc, Date: 2020-01-09  Authors: megan leonhardt
Keywords: news, cnbc, companies, democrats, theres, republicans, earners, inequality, americans, say, pew, likely, agree, economic


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Here are 5 steps to build a budget if you don’t have a steady income

Here are five steps Aliche recommends taking in order to build a budget if your monthly income tends to fluctuate. Calculate your ‘noodle budget’The first step to creating a budget, Aliche says, is to figure out your financial baseline, something she calls the “noodle budget.” “That is your noodle budget, and you don’t have to live there, but you should know what it is on paper,” Aliche says. But if you have an irregular income, your need to start thinking in percentages because your income is g


Here are five steps Aliche recommends taking in order to build a budget if your monthly income tends to fluctuate.
Calculate your ‘noodle budget’The first step to creating a budget, Aliche says, is to figure out your financial baseline, something she calls the “noodle budget.”
“That is your noodle budget, and you don’t have to live there, but you should know what it is on paper,” Aliche says.
But if you have an irregular income, your need to start thinking in percentages because your income is g
Here are 5 steps to build a budget if you don’t have a steady income Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-08  Authors: megan leonhardt
Keywords: news, cnbc, companies, need, month, dont, budget, steps, going, pot, income, steady, build, savings, noodle, pay, aliche


Here are 5 steps to build a budget if you don't have a steady income

For most Americans, their monthly pay isn’t consistent or predictable, making it challenging to estimate how much they have to cover things like food, rent, utilities, cell phone bills and even going out with friends. The average American family routinely experienced a 36% change in income month-to-month from 2013 to 2018, according to a recent report released by JPMorgan Chase Institute. And if your income varies each month, it can make building a budget — already a challenge for many Americans — very difficult. But Tiffany Aliche, personal finance expert and founder of The Budgetnista, says it’s not impossible to create a simple and realistic budget, even if you don’t have a steady income stream. Here are five steps Aliche recommends taking in order to build a budget if your monthly income tends to fluctuate.

1. Calculate your ‘noodle budget’

The first step to creating a budget, Aliche says, is to figure out your financial baseline, something she calls the “noodle budget.” If you have to eat only Ramen noodles — and we’ve all been there — and pay for the barest basics such as rent and utilities, what is the lowest possible amount that you can spend? “That is your noodle budget, and you don’t have to live there, but you should know what it is on paper,” Aliche says. Once you calculate what that dollar amount looks like, then you know exactly how much you need to make a month to eek by.

2. Live by percentages

When you have a regular, steady income, you live and die by the number on your paycheck. If you make $2,000 a month, typically you allocate your budget based on dollars. Maybe $500 goes to rent, $200 toward transportation and $100 for utilities, for example. But if you have an irregular income, your need to start thinking in percentages because your income is going to vary. First, you’ll need to set aside at least 20% to 25% of your income for taxes, Aliche says. Remember if you’re self-employed, generally you need to file an annual return and pay estimated tax quarterly. “I like to work with the taxes first because Uncle Sam don’t play,” she adds. Next, set aside a percentage for living. Remember your noodle budget? That’s why you calculated it. Look at what you’re typically bringing in and then calculate what percentage that is of the entire typical monthly pay. You may want to play around with the math a bit, since the noodle budget is the baseline, and you’ll likely want room to eat out and perhaps pay for some extra expenses such as gym memberships. This is going to be a big part of your budget, about 30% to 40%, perhaps even up to 50%. Then you’re going to want to set aside money for savings and debt as well as something for having fun. This portion can be anywhere from 25% to 50% of your monthly income depending on how much you set aside for general living expenses and taxes, as well as how much debt you have to pay off each month.

3. Separate to see the big picture

Sometimes you need to separate your money to see what you actually have, Aliche says. She recommends that you have multiple accounts dedicated for specific purposes. First, have a deposit account where employers can directly deposit your pay. Then Aliche recommends having a separate account just for bills, as well as multiple savings accounts. “I actually believe chopping up my savings accounts into big, major goals. I might have a house savings, a car savings, and a big old birthday party savings,” she says. A number of online banks such as Ally and credit unions like Alliant allow multiple, free savings accounts. Some banks, like Capital One, even allow customers to have sub-savings accounts, rather than open up separate accounts.

4. Pay the pot

Perhaps the most important step when you have an irregular income is to pay the pot and let the pot pay you, Aliche says. What does she mean by that? Let’s just say your noodle budget is $2,500 a month. This month, you made $10,000. You are going to deposit that $10,000 into your main account, the pot. “The pot is going to pay your noodle budget or better,” Aliche says. So maybe you tell yourself: I would really like to have a budget of about $3,000 a month, so the pot is going to pay you $3,000 this month and you can transfer that money into your “living expenses account.” Then put what’s left, $7,000, away in savings. Next month, maybe you only make $2,000, but that’s OK. The pot can still pay you $3,000 because you put that extra $7,000 away the month before. So you put $2,000 into your living expenses account and withdraw $1,000 from savings to make up the difference.

5. Be like a squirrel


Company: cnbc, Activity: cnbc, Date: 2020-01-08  Authors: megan leonhardt
Keywords: news, cnbc, companies, need, month, dont, budget, steps, going, pot, income, steady, build, savings, noodle, pay, aliche


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5 tips to help you earn more cash while cleaning out your closet

If you choose to resell your unwanted items, cleaning out your home may help you add some extra dollars to your 2020 budget. Here are five strategies shopping and resale experts recommend you employ to help you get the most money for any items you’re looking to part with. Even if you’re selling used devices, it never hurts to give that old phone or tablet a quick clean to show off its prime condition. “Poshmark is more time intensive because in order to sell items fast you need to share them to


If you choose to resell your unwanted items, cleaning out your home may help you add some extra dollars to your 2020 budget.
Here are five strategies shopping and resale experts recommend you employ to help you get the most money for any items you’re looking to part with.
Even if you’re selling used devices, it never hurts to give that old phone or tablet a quick clean to show off its prime condition.
“Poshmark is more time intensive because in order to sell items fast you need to share them to
5 tips to help you earn more cash while cleaning out your closet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-31  Authors: megan leonhardt
Keywords: news, cnbc, companies, resale, selling, cash, need, youre, closet, items, cleaning, earn, thredup, brands, help, sell, best, poshmark, tips


5 tips to help you earn more cash while cleaning out your closet

If you’re like many Americans, kicking off the new year right means spending time decluttering your home and cleaning out the closets and junk drawers that inevitably fill up throughout the year. That may even include a few unwanted holiday gifts that you haven’t yet found a place for. If you choose to resell your unwanted items, cleaning out your home may help you add some extra dollars to your 2020 budget. Here are five strategies shopping and resale experts recommend you employ to help you get the most money for any items you’re looking to part with.

1. Clean and repair before you sell

Clothes you plan to resell should be undamaged and in-season. “You’ll likely have less luck sending bathing suits and summer sandals in January,” Sam Blumenthal, spokesperson for resale site thredUP, tells CNBC Make It.

Make sure the clothes are clean and in the best possible condition. “We recommend laundering or steaming your items, removing any stains and mending things such as loose buttons,” Blumenthal says. “Being unclean is one of the top reasons items get rejected.” Even if you’re selling used devices, it never hurts to give that old phone or tablet a quick clean to show off its prime condition.

2. Understand how it works

If you’re new to the resale game, take some time to browse your options. There are dozens of popular resale sites and apps, which include everything from general interest places like eBay, Facebook Marketplace and Mercari, to clothing-specific ones such as Poshmark and thredUP, to tech and device hubs like Decluttr. That’s in addition to the more traditional outlets like resale and consignment shops. No matter where you go to sell your things, you need to understand how the selling process works and how you’re getting paid. Poshmark gives you the power to set your prices, whereas thredUP determines what clothing it will accept and the price its team expects it will sell best at. There is also a cost to using these services, typically through lower payouts, commissions or upfront fees. When items are sold on Poshmark for $15 or less, the app charges sellers $2.95. Anything selling for more than $15 gives the app a 20% commission. In comparison, eBay typically charges 35 cents to list most items (the first 50 items you list are free) and while commissions vary, most sellers pay eBay about 10% of the final cost of the item. It may also help to research how much time, on average, the process will take with different services, as well as how much time you’ll need to devote to make sure things sell. Currently, thredUP estimates it will take about two weeks to process orders or you can pay an extra $16 to guarantee you’ll get it processed within one week. On Poshmark, the timing can vary widely because it is a social sharing app, Lauren Greutman, a frugal living expert and founder of LaurenGreutman.com, tells CNBC Make It. In order for you to sell an item quickly, you need to share it during the day to followers of your account, she says. Poshmark also has multiple “Posh Parties” per day that curate sales for specific types of items or brands. If your listing is pulled into one of these, you have a greater chance at selling. “EBay is easier in the sense that you can just list and forget about it,” Greutman says. “Poshmark is more time intensive because in order to sell items fast you need to share them to your followers during the day.”

3. Find out what sells best

If you’re really looking to maximize your potential profits, you need to find out which items and brands sell best. You may love that quirky skirt from a popular Instagram brand, but that doesn’t mean it will sell. For those considering thredUp, the service offers a handy seller’s guide that outlines what types of clothing are hot items right now, such as fashionable activewear and designer shoes and handbags. Blumenthal says the most popular brands on thredUP include The North Face, Lululemon and Kate Spade, along with luxury brands such as Gucci, Prada and Burberry. In general, Greutman says brands that have a “cult following,” like Lululemon and Anthropologie, almost always sell easily. Current styles are also a good bet. To find out what sells the best, Greutman uses the website shopbop.com and checks out what they have listed. YouTube also has a lot of great tutorials on brands to look for, she adds.

During the latest holiday season, Decluttr reports the hottest selling tech items included phones such as the iPhone 8 Plus, iPhone X and Samsung S9, as well as the Apple Watch Series 4 GPS + Cellular 44 and the PS4 (500GB) gaming system. “It seems gamers are cashing in whilst trade in-prices are at a high,” Liam Howley, CMO at Decluttr, says, adding that there’s a “jam-packed gaming release schedule” around the corner in 2020 that will likely cause the cost of these systems to drop once newer versions are on sale. If you’re looking to unload an old phone, check out SellCell.com, which compares prices from all the leading cell phone buyers in the U.S. The site offers an easy way to compare prices, but only on phones.

4. Determine how important convenience is to you

When it comes to selling your unwanted items, you may have to put in quite a lot of work to really get the most money for your stuff. If you’re looking to unload things quickly and conveniently, you may not get the best price. Many resale sites and apps are designed to focus on convenience. “It’s important for sellers to keep in mind that thredUP is the most convenient place for women to clean out everything in their closet — from GAP to Gucci — not necessarily the place they will make the most money (since thredUP does all the work for you!),” Blumenthal says. Many tech-centric resale sites also focus on convenience, rather than getting you the best possible price. With TargetTrade-In.com, you can trade in your unwanted electronics — from phones and tablets to game consoles and voice speakers — for a Target gift card. But an unlocked iPhone 6 with 64GB of storage in working condition nets you just $13.76 on the site, compared to $59 on Decluttr.

5. Create a specific and appealing listing


Company: cnbc, Activity: cnbc, Date: 2019-12-31  Authors: megan leonhardt
Keywords: news, cnbc, companies, resale, selling, cash, need, youre, closet, items, cleaning, earn, thredup, brands, help, sell, best, poshmark, tips


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Nearly 7 million Americans are starting 2020 with a pay raise

On average, those working in jurisdictions with minimum wage hikes will see their annual earnings increase by $150 to $1,700, the EPI reports. “Local communities all around the country strongly support raising the minimum wage, because people see their friends, neighbors or themselves working hard but not getting ahead.” Following the increases on New Year’s Day, four states and 23 cities and counties have planned additional minimum wage increases that will kick in later in 2020. Yet for all the


On average, those working in jurisdictions with minimum wage hikes will see their annual earnings increase by $150 to $1,700, the EPI reports.
“Local communities all around the country strongly support raising the minimum wage, because people see their friends, neighbors or themselves working hard but not getting ahead.”
Following the increases on New Year’s Day, four states and 23 cities and counties have planned additional minimum wage increases that will kick in later in 2020.
Yet for all the
Nearly 7 million Americans are starting 2020 with a pay raise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-30  Authors: megan leonhardt
Keywords: news, cnbc, companies, starting, increases, 2020, nelp, americans, hour, nearly, jurisdictions, pay, raise, minimum, million, wage, workers, states


Nearly 7 million Americans are starting 2020 with a pay raise

Starting on Wednesday, there will be 47 new wage increases hitting workers in cities, counties and states across the country, according to the National Employment Law Project. That means about 6.8 million Americans will start the year with higher wages, progressive think tank the Economic Policy Institute estimates. On average, those working in jurisdictions with minimum wage hikes will see their annual earnings increase by $150 to $1,700, the EPI reports. The wage increases range from a 10 cent inflation adjustment in Florida to $1.50 per hour raises in states such as New Mexico and Washington. About 17 planned wage hikes promise to pay workers at least $15 per hour, many exceeding that threshold, the liberal-leaning nonprofit NELP finds.

More jurisdictions are raising their minimum wage at the start of the year than ever before, NELP says, giving much of the credit for the increases to Fight for $15, a campaign to raise wages for fast food workers, first launched in New York City in 2012. “It shows the incredible momentum that the Fight for $15 movement has built up,” Yannet Lathrop, policy analyst with NELP and the report’s author, said in a statement. “Local communities all around the country strongly support raising the minimum wage, because people see their friends, neighbors or themselves working hard but not getting ahead.” Following the increases on New Year’s Day, four states and 23 cities and counties have planned additional minimum wage increases that will kick in later in 2020. Of those, 15 more jurisdictions will see hikes going up to $15 or more per hour. Yet for all the success at the local level, it’s been 10 years since Congress set the current federal minimum wage at $7.25. This summer, the Democrat-controlled House of Representatives passed the Raise the Wage Act, which aims to gradually raise the federal minimum wage to $15 by 2025. But the Republican-controlled Senate has yet to pick up the legislation. Currently, there are still 21 states where the minimum wage remains frozen at $7.25.


Company: cnbc, Activity: cnbc, Date: 2019-12-30  Authors: megan leonhardt
Keywords: news, cnbc, companies, starting, increases, 2020, nelp, americans, hour, nearly, jurisdictions, pay, raise, minimum, million, wage, workers, states


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From getting laid off to having $2.26 in the bank—4 money experts share what they’ve learned from this decade

Ended the decade: Aliche now runs four companies and has 30 people that work with her. Biggest money lessons: Invest and negotiate your pay. Source: Grant SabatierGrant Sabatier: Time is more valuable than moneyCreator of the Millennial Money community and author of “Financial Freedom” Started off the decade: Broke. I get to share and connect with hundreds of thousands of people around the world through my website Millennial Money. Biggest money lessons: Time is so much more valuable than money.


Ended the decade: Aliche now runs four companies and has 30 people that work with her.
Biggest money lessons: Invest and negotiate your pay.
Source: Grant SabatierGrant Sabatier: Time is more valuable than moneyCreator of the Millennial Money community and author of “Financial Freedom” Started off the decade: Broke.
I get to share and connect with hundreds of thousands of people around the world through my website Millennial Money.
Biggest money lessons: Time is so much more valuable than money.
From getting laid off to having $2.26 in the bank—4 money experts share what they’ve learned from this decade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-23  Authors: megan leonhardt
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From getting laid off to having $2.26 in the bank—4 money experts share what they've learned from this decade

The past decade has been a roller coaster for many millennials. Many in this generation wrapped up college, embarked on (and lost) jobs, moved to new cities and even bought homes and started families. Through it all, they’ve picked up valuable financial, and life, lessons. To commemorate the ups and downs of this past decade, we asked several of the money experts CNBC Make It regularly turns to for advice to share a few of the biggest lessons they’ve learned over the past 10 years. Here’s a look at where they were in 2010, how they’re finishing the decade and what they learned in the intervening years.

Tiffany Aliche, “The Budgetnista”

Tiffany Aliche: Debt-free does not equal wealth

Founder of The Budgetnista and runs an online school, the Live Richer Academy Started off the decade: In 2010, Aliche moved back home with her parents at 30 years old. “I lost my job in 2009 during the recession and could no longer afford my mortgage, so I lost my home too,” she says. Ended the decade: Aliche now runs four companies and has 30 people that work with her. “There are a lot of calls and Slack,” she says, adding she’s also a personal finance personality (The Budgetnista), so on any given day she might be on the news, taping a segment for a TV show or being interviewed for a podcast, radio show, blog, magazine or newspaper. Biggest money lesson: Debt-free does not equal wealth. “The recession left me shell-shocked and I started to throw all of my money toward my debt,” she says. “I felt like debt was the reason I struggled so much after losing my job.” After Aliche aggressively paid off her credit card debt, she started in on her student loans — only to come to a realization. “I could use my money to get out of debt as quickly as possible, or I could create a moderate debt pay down plan, then use the excess money to learn, earn and grow wealth via my business, The Budgetnista,” Aliche says. She chose The Budgetnista. Eight years later, she’s running a multi-million-dollar business, paid off her student loans, paid off her parent’s house, purchased her dream home and even bought an investment property in full. “When you focus on debt-free, that’s all you get, no debt,” she says. “When you focus on wealth, you get opportunities, debt freedom, savings and money in the bank.”

Erin Lowry says it’s important to invest while paying off debt.

Erin Lowry: Invest and negotiate

Author of “Broke Millennial” and “Broke Millennial Takes On Investing” Started off the decade: Still in college. “I graduated in May 2011, so 2010 was the end of my junior year, start of my senior year of college,” Lowry says. Ended the decade: On the road. “Everything has changed since 2010 because I’m outside the collegiate bubble now. I’m married (to the same person I was dating in 2010!), I live in New York City, have a dog and an actual career,” Lowry says. Earlier this year, she was on the road off-and-on for six weeks for a book tour for her second book. Biggest money lessons: Invest and negotiate your pay. “Those are both lessons I didn’t build or even learn about while in college. Arguably, they’re two of the most important ones to learn for building wealth and financial security,” Lowry says. Another important lesson Lowry learned: Be open to new opportunities. Allow yourself the flexibility to pursue the unexpected in your life, she says. “It’s easy, especially early on in our lives and careers, to get extremely focused on where we ‘should be’ or what we should be doing, which can keep us on a fairly rigid, traditional path,” Lowry says. “Outside of living in New York City, my life looks nothing like what 20-year-old Erin had envisioned in 2010.” And as it turns out, that’s OK.

Grant Sabatier says building a relationship with your money is the key to having more of it. Source: Grant Sabatier

Grant Sabatier: Time is more valuable than money

Creator of the Millennial Money community and author of “Financial Freedom” Started off the decade: Broke. “In August 2010 I had to move back home with my parents because I only had $2.26 to my name,” Sabatier says. “After bouncing around four jobs after college, I was 24 and couldn’t find the right fit. After getting laid off in early 2010, I eventually ran out of money by June.” Ended the decade: After saving over $1 million in five years, Sabatier is now running Millennial Money, a community where he shares the secrets of his success and encourages others to do the same. “Now I wake up every day and can do whatever I want, which is usually writing and reading. I get to share and connect with hundreds of thousands of people around the world through my website Millennial Money. No two days are the same, which I love,” he says. Biggest money lessons: Time is so much more valuable than money. “You can always go out and make more money, but you’ll never get back this moment,” he says. Another big lesson: Saving is an opportunity, not a sacrifice. Your savings rate — the percentage of your income that you save — is the most important number in your financial life, Sabatier says. “There’s a direct correlation between the percentage of your income that you’re saving and the number of years it will take you to reach financial independence,” he adds.

Farnoosh Torabi

Farnoosh Torabi: Progress is sometimes disguised as failure


Company: cnbc, Activity: cnbc, Date: 2019-12-23  Authors: megan leonhardt
Keywords: news, cnbc, companies, started, sabatier, share, having, getting, experts, lowry, bank4, 2010, millennial, decade, lessons, money, aliche, laid, debt, theyve, learned


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Santa’s pay takes a hit this year

That’s because professional Santas, those who work in malls and private events, are expected to make about 8% less in hourly wages than in 2018. That said, the best Santas — those who are in the top 75th percentile of earners — continue to see their wages increase. Last year, the median hourly pay for the top professionals was about $75, but that jumped to $122 per hour this year. About one in four mall shoppers will have their children take a photo with Santa, according to the International Cou


That’s because professional Santas, those who work in malls and private events, are expected to make about 8% less in hourly wages than in 2018.
That said, the best Santas — those who are in the top 75th percentile of earners — continue to see their wages increase.
Last year, the median hourly pay for the top professionals was about $75, but that jumped to $122 per hour this year.
About one in four mall shoppers will have their children take a photo with Santa, according to the International Cou
Santa’s pay takes a hit this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-23  Authors: megan leonhardt
Keywords: news, cnbc, companies, pay, stores, arnold, fee, according, santas, hour, hit, hourly, events, work, santa, takes


Santa's pay takes a hit this year

This year, there may be less for Santa to ‘ho, ho, ho’ about. That’s because professional Santas, those who work in malls and private events, are expected to make about 8% less in hourly wages than in 2018.

The median hourly wage for those who work as Santa Clause during the holiday season is $37.60 per hour this year, according to PayScale. That’s down from the $41 per hour PayScale reported in 2018.

That said, the best Santas — those who are in the top 75th percentile of earners — continue to see their wages increase. Last year, the median hourly pay for the top professionals was about $75, but that jumped to $122 per hour this year. Over a six-week holiday season, the best in the business may take home more than $40,000, according to PayScale.

Source: PayScale

The most popular place to see Santa is still in stores. About one in four mall shoppers will have their children take a photo with Santa, according to the International Council of Shopping Centers. Santas who score these gigs tend to work 10-hour shifts and connect with about 150 people daily, reports the Bureau of Labor Statistics.

Of course, the number of mall and department store gigs has shrunk in recent years as many shopping outlets have closed their doors. The decline isn’t stopping any time soon. Retailers announced plans to shutter 10,600 stores across the U.S. this year, according to real estate research firm Costar — almost double the 5,400 closed in 2018.

In addition to a shrinking number of retail locations, one of the biggest Santa photography companies, Cherry Hill, consolidated several companies into a single entity over the past couple of years, which has also had an impact, says Stephen Arnold, president of the International Brotherhood of Real Bearded Santas.

“They have sought to control their expenses to achieve better financial results for the some 900 stores to which they supply Santas,” he says. Those coordinating placements, for example, now place Santas as close to home as possible to minimize travel expenses and per diems, which has an effect on the net average wages.

For that reason and others, Arnold says a higher percentage of IBRBS members are leaving the mall Santa business and gravitating to the private/corporate Santa appearance business.

“While not as predictable or secure (one of the reasons those who remain with malls) in income, private home visits, corporate events, special events, and public events can offer a much better fee per hour,” Arnold says. With these types of gigs, Santas are able to work less and make more. And these types of jobs still allow many to donate time to charitable entities, an activity many members make a priority, Arnold says.

Over the last three years, Arnold says he’s actually raised his average hourly appearance fee and now charges a fee for the first 30 minutes, and then charges in 15-minute increments for any subsequent time. His fees average more than four times PayScale’s hourly fee estimates.

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Company: cnbc, Activity: cnbc, Date: 2019-12-23  Authors: megan leonhardt
Keywords: news, cnbc, companies, pay, stores, arnold, fee, according, santas, hour, hit, hourly, events, work, santa, takes


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