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Vanguard Lowers Minimum for Admiral Shares of Index Funds to $3,000

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Vanguard Group is lowering the minimum amounts customers need to invest to get cheaper prices on more than three dozen of its index funds. The Wall Street Journal reports:

“The $5.3 trillion indexing giant’s move is the latest salvo in Vanguard’s push to lure investors from rivals at a time asset managers are under pressure to slash the costs of funds. Starting Monday, the firm is lowering the minimums for admiral shares—a share class that costs less than regular investor classes—to $3,000 from $10,000 for 38 index mutual funds. The funds make up the majority of Vanguard’s index funds that are available to individual investors and include some of the industry’s largest stock and bond index funds.”

Here’s what Vanguard officially announced: “Our index funds changed investing forever. Now we’re making them even better. We’re lowering costs for more than 1 million current index fund investors and giving new investors one more reason to choose Vanguard. To do that, we’re dropping the minimum investment for Admiral Shares on 38 index funds. Our Admiral Shares were previously available to investors with over $10,000 per fund. Now you’ll only need $3,000 to take advantage of the low expense ratios Admiral Shares offer. In turn, we’re eliminating higher-cost Investor Shares of those same index funds for individual investors.”

You Can Now Watch Free Movies with Ad-Supported on YouTube

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YouTube’s “Movies & Shows” page added a “Free to Watch” section last month. They’re trying to compete with free ad-supported online movie offerings from Roku, Walmart, and Tubi.

YouTube quietly added around 100 ad-supported Hollywood movies to its site. The titles include a mix of classics like “Rocky” and “The Terminator,” as well as other family fare like “Zookeeper,” “Agent Cody Banks,” and “Legally Blonde,” among others. TechCrunch reported:

Before, YouTube had only offered consumers the ability to purchase movies and TV shows, similar to how you can rent or buy content from Apple’s iTunes or Amazon Video.

Currently, YouTube is serving ads on these free movies, but the report said the company is open to working out other deals with advertisers – like sponsorships or exclusive screenings.

YouTube’s advantage in this space, compared with some others, is its sizable user base of 1.9 billion monthly active users and its ability to target ads using data from Google.

Here’s What Happens If No One Comes Forward for the Unclaimed $1.5 Billion Mega Millions Jackpot

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In late October, Mega Millions announced that someone had won its $1.5 billion jackpot. But weeks have passed and no one has come forward to claim the record-setting prize yet. CNBC reports:

“Everyone’s talking about it,” said Jee Patel, the manager of the KC Mart in Simpsonville, South Carolina, where the ticket was purchased. “It’s a mystery.”

The winner, who beat the odds of 1 in 302 million, gets 180 days, or until April 21, to collect before the ticket expires.

If the prize goes unclaimed by the deadline, according to the Mega Millions website, “each participating state in the Mega Millions game will get back all the money that state contributed to the unclaimed jackpot.”

Household Debt Hit a Record High of $13.5 Trillion Last Quarter

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The total debt shouldered by Americans has hit another record high, rising to $13.5 trillion in the last quarter, while an unusual jump in student-loan delinquencies could provide another signal that the nation’s economic expansion is growing old. Total household debt is now $837 billion higher than its previous peak, which was in 2008 before the recession. NBC News reports:

The world’s largest economy has grown well above potential this year on the back of strong consumer spending and the lowest unemployment rate since the 1960s. If growth continues for another year it will be the longest ever.

Total household debt, driven by a $9.1 trillion in mortgages, is now $837 billion higher than its previous peak in 2008, just as the last recession took hold. Such debt has risen steadily for more than four years and sits more than 21 percent above a trough in 2013.

The $219 billion rise in total debt in the quarter ended September 30 was the biggest jump since 2016.

Financial Literacy Isn’t a Skill — It’s a Lifestyle

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Financial literacy isn’t a skill — it’s a lifestyle. Take it from Curtis “Wall Street” Carroll. As an incarcerated individual, Caroll knows the power of a dollar. While in prison, he taught himself how to read and trade stocks, and now he shares a simple, powerful message: we all need to be more savvy with our money.

How to Succeed at Work by Empowering Yourself

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Harvey Coleman wrote Empowering Yourself: The Organizational Game Revealed. In the book, Coleman shows how to succeed at work. A poster on reddit shares a summary by Wendy Nemitz of “Empowering Yourself” as a way to leverage your career and influence.

Coleman divides the essential elements of success in the business world into three main elements, called the P.I.E. formula. ‘P’ is for performance, which Coleman suggests is 10% of the success formula. ‘I’ stands for image, which Coleman states is about 30% of success. ‘E’ is for exposure, which Coleman says is valued at 60% of his success formula.

Performance is the foundation of success. While Coleman says it is only 10% of success, without it you can’t move up.

  1. Your performance is a direct reflection on you. It is your entry ticket into the organization.
  2. Don’t boast too much about success. Don’t complain about the lack of success in others. Bragging and complaining are not the marks of winners.
  3. Take credit for your performance even if you are tempted to deflect it or are uncomfortable. Take compliments and praise gracefully.
  4. Understand that while performance is crucial, it is just part of the P.I.E. formula. Performance alone will not bring promotions.
  5. Be a team player but be willing to be the star player.
  6. Ask for help when you need it.
  7. Seek to improve the performance of others and of the whole company. Their success will reflect on you.
  8. Share information and help others. They will not forget.
  9. Technical skills are only part of performance. Both your task and your people skills affect your performance.
  10. If you are not thorough or detailed, get someone to help on issues like proofing. Pay attention to the details.
  11. Welcome performance reviews as a chance to improve.
  12. Set goals.
  13. Celebrate your accomplishments.
  14. Know your boss’s expectations and priorities and perform to them. It is no use to ignore the boss’s expectations and achieve your own. Make choices about what you spend your time on. Spend time on work priorities by first understanding what they are.

[Read more…]

Most Americans Aren’t Financially Healthy Despite Booming Economy, Survey Finds

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The economy is growing, unemployment is low and, lately, workers are starting to see some wage gains. But a new survey from USC and the nonprofit Center for Financial Services Innovation makes the case that, despite an overall healthy-looking economy, many Americans are struggling to save, pay bills and remain on firm financial footing. Los Angeles Times reports:

The survey, called the Financial Health Pulse, found that only 28% of American households are financially healthy, meaning they are in control of their spending, are saving money, don’t have too much debt and are planning for the unforeseen.

An additional 55% are financially coping — struggling in a few areas, but doing OK in others — while 17% are classified as financially vulnerable, meaning they are struggling with most aspects of their financial lives.

Jennifer Tescher, CFSI’s chief executive, said the goal of the survey, which the group plans to do annually, is to get a sense of how Americans are doing without relying on the kind of high-level economic data that policymakers typically focus on.

More Than One-Quarter of renters Can’t Cover a $400 Emergency

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More than one-quarter of U.S. renters in a survey are not confident they could cover a $400 emergency. Financial stress visits renters more than homeowners. That’s the main takeaway from a new report by the Urban Institute, a nonpartisan think tank in Washington. CNBC reports:

“Rental costs are rising much faster than renters’ salaries. Between 1960 and 2016, the median income for a renter grew by just 5 percent. During the same period, the median rent ballooned by more than 60 percent, according to The Joint Center for Housing Studies of Harvard University… Half of renters in the survey reported a material hardship in the past year, compared with one-third of homeowners. Around 18 percent of homeowners reported low emergency savings.”

IRS Increases Contribution Limits for Retirement Accounts

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The IRS has increased the contribution limits for various retirement accounts for 2019.

The Internal Revenue Service said Thursday that the contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The catch-up contribution limit, which is a higher threshold for employees 50 years or older using these accounts, remains unchanged at $6,000. The changes were among several inflation adjustments announced by the IRS.

The limit on annual contributions to an IRA, which hadn’t increased since 2013, were also raised to $6,000 from $5,500.

How much money you need to be part of the 1% worldwide

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Just how much money do you need to be among the global 1 percent? According to the 2018 Global Wealth Report from Credit Suisse Research Institute, you need a net worth of $871,320 U.S. Credit Suisse defines net worth, or “wealth,” as “the value of financial assets plus real assets (principally housing) owned by households, minus their debts.” CNBC reports:

More than 19 million Americans are in the 1 percent worldwide, Credit Suisse reports, far more than from any other country, while “China is now clearly established in second place in the world wealth hierarchy,” with 4.2 million citizens among the world’s top 1 percent.

To be among the top 10 percent worldwide, you don’t even need six figures: A net worth of $93,170 will do it.

And even if you have just $4,210 to your name, you’re still richer than half of the world’s residents.

Whopping 62 Percent of Jobs Don’t Support Middle-Class Life After Accounting for Cost of Living

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Despite an unemployment rate that has reached a 50-year low of 3.7 percent, most jobs across the U.S. don’t support a middle-class or better lifestyle, leaving many Americans struggling, according to a new study. USA Today reports:

Sixty-two percent of jobs fall short of that middle-class standard when factoring in both wages and the cost of living in the metro area where the job is located, according to the study by Third Way, a think tank that advocates center-left ideas.

“There’s an opportunity crisis in the country,” says Jim Kessler, vice president of policy for Third Way and editor of the report. “It explains some of the economic uneasiness and, frankly, the political uneasiness” even amid the most robust U.S. economy and labor market since before the Great Recession of 2007 to 2009.

A slight majority of Americans, 52 percent, do live in middle-class households, according to recent annual reports by Pew Research Center. And another 20 percent or so live in upper income households. But that’s because they’re juggling multiple jobs, for example, or relying on investments, an inheritance or other household members who may have higher-paying jobs.

Americans Save Less to Sustain Spending as Income Gains Cool

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Americans kept on spending in September as income gains cooled, pushing down the savings rate to the lowest this year. Inflation matched the Federal Reserve’s target, reinforcing the central bank’s outlook for gradual interest-rate hikes. Bloomberg reports:

Purchases, which account for about 70 percent of the economy, rose 0.4 percent from the prior month, matching economists’ estimates, following an upwardly revised 0.5 percent increase, Commerce Department figures showed Monday. Incomes advanced a less-than-projected 0.2 percent, the weakest in more than a year, while Americans saved 6.2 percent of their disposable income, matching the lowest level since 2013.

Nearly Half the World Lives on Less Than $5.50 a Day: World Bank

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Despite progress in reducing extreme poverty, nearly half the world’s population lives on less than $5.50 a day, with a rising share of the poor in wealthier economies, the World Bank said Wednesday. Phys.org reports:

In a twice-yearly report, the bank took a broader look at poverty to see where countries were lagging, even though the share of those living in extreme poverty—defined as earning less than $1.90 a day—has continued to come down in recent years.

Under the expanded criteria for poverty, the report found the number of poor worldwide was still “unacceptably high,” while the fruits of economic growth were “shared unevenly across regions and countries.”

Even though global growth of recent years had been sluggish, the total count of people in poverty declined by more than 68 million people between 2013 and 2015—”a number roughly equivalent to the population of Thailand or the United Kingdom.”

Despite the improvement, the report said current trends indicated the World Bank’s goal of reducing extreme poverty to less than three percent of the world’s population by 2030 may be unattainable.

Many Pay High Investment Company Fees for Services They Don’t Use, Survey Shows

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If you are investing in stocks, bonds, or mutual funds, you have a wide range of options to help manage your portfolio—everything from traditional brokerages to mutual fund companies to online financial firms. But as consumers search for an investment company, many pay little attention to the fees they’re being charged, according to a just-released Consumer Reports survey of more than 46,000 CR members. Penelope Wang, writing for Consumer Reports:

Four out of 10 surveyed said they weren’t sure what they paid in fees. And of those who knew the costs, only 60 percent rated their investment company in our survey as Excellent or Very Good on the amount charged.

“Hidden and confusing fees are proliferating across the marketplace, making it hard for consumers to know what they’re getting for their money, and to comparison shop across providers,” says Anna Laitin, director of financial policy at Consumers Union, the advocacy division of Consumer Reports.

“It is concerning that so many investors don’t know how much they are paying in fees and that many of those who do understand the fees don’t appear to think they are getting their money’s worth,” she says.

40% of American Middle Class Face Poverty in Retirement, Study Concludes

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Nearly half of middle-class Americans face a slide into poverty as they enter their retirement, a recent study by the Schwartz Center for Economic Policy Analysis at the New School has concluded. CNBC reports:

Roughly 40 percent of Americans who are considered middle class (based on their income levels) will fall into poverty or near poverty by the time they reach age 65, according to the study.

The study also concluded that if workers age 50 to 60 decide to retire at age 62, 8.5 million of them are projected to fall below twice the Federal Poverty Level, with retirement incomes below $23,340 for singles and $31,260 for couples. Further, 2.6 million of those 8.5 million downwardly mobile workers and their spouses will have incomes below the poverty level — $11,670 for an individual and $15,730 for a two-person household.