Top Financial Concerns of Baby Boomers, Generation Xers, and Millennials

 
Top Financial Concerns of Baby Boomers, Generation Xers, and MillennialsMany differences exist among baby boomers, Generation Xers, and millennials. But one thing that brings all three generations together is a concern about their financial situations.
 
According to an April 2016 employee financial wellness survey, 38% of boomers, 46% of Gen Xers, and 51% of millennials said that financial matters are the top cause of stress in their lives. In fact, baby boomers (50%), Gen Xers (56%), and millennials (60%) share the same top financial concern about not having enough emergency savings for unexpected expenses. Following are additional financial concerns for each group and some tips on how to address them.
 

Baby boomers

 
Baby boomers cite retirement as a top concern, with 45% of the group saying they worry about not being able to retire when they want to. Although 79% of the baby boomers said they are currently saving for retirement, 52% of the same group believe they will have to delay retirement. Health issues (30%) and health-care costs (38%) are some of the biggest retirement concerns cited by baby boomers. As a result, many baby boomers (23%) are delaying retirement in order to retain their current health-care benefits.
 
Other reasons reported by baby boomers for delaying retirement include not having enough money saved to retire (48%), not wanting to retire (27%), and having too much debt (23%).
 
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Ten Year-End Tax Tips for 2016

 
Ten Year-End Tax Tips for 2016Here are 10 things to consider as you weigh potential tax moves between now and the end of the year.
 

1. Set aside time to plan

 
Effective planning requires that you have a good understanding of your current tax situation, as well as a reasonable estimate of how your circumstances might change next year. There’s a real opportunity for tax savings if you’ll be paying taxes at a lower rate in one year than in the other. However, the window for most tax-saving moves closes on December 31, so don’t procrastinate.
 

2. Defer income to next year

 
Consider opportunities to defer income to 2017, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rents, and payments for services. Doing so may enable you to postpone payment of tax on the income until next year.
 
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Earnings Call: A Closer Look at Financial Reports

 
Earnings Call: A Closer Look at Financial ReportsThe second quarter of 2016 marked the fifth quarter in a row of declining U.S. corporate earnings. Low oil prices and a strong dollar were largely to blame for lackluster financial results. 1
 
Publicly traded companies are required to report quarterly financial results to regulators and shareholders. Earnings season is the often-turbulent period when most companies must disclose their successes and failures.
 
An earnings surprise–whether profits come in above or below the stock market’s expectations–can have an immediate effect on a company’s stock price, so it’s easy to understand why executives may go to great lengths to impress their investors. Earnings do represent a corporation’s bottom line and are generally a key driver of the stock price over time. Still, an earnings surprise may not be a reliable indicator of a company’s longer-term outlook, partly because earnings figures generally reflect past performance.
 
Earnings are just one factor to consider when evaluating a company’s outlook. Sales performance, research and development, new products, consumer trends, and global economic conditions can all affect future results.
 
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Are federal employees eligible for phased retirement?

 

Are federal employees eligible for phased retirement?Yes, a phased retirement program is authorized by the Moving Ahead for Progress in the 21st Century Act or MAP-21. In 2014, the United States Office of Personnel Management (OPM) issued final rules relative to the program that provide guidance to agencies and employees about who may elect phased retirement, what benefits are provided, how the retirement pension/annuity is computed during and following phased retirement, and how federal employees may exit the phased retirement program.

Generally, each federal agency has the option of offering a phased retirement program–employees have no right to phased retirement. Otherwise, only employees who have worked full-time for the preceding three years–who meet certain age and years of service combinations for immediate retirement in either the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS)–may be eligible. Employees subject to mandatory retirement (law enforcement officers, firefighters, air traffic controllers, etc.) may not participate.

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What is a phased retirement?

 

What is a phased retirement?In its broadest sense, a phased retirement is a gradual change in your work patterns as you head into retirement. Specifically, a phased retirement usually refers to an arrangement that allows employees who have reached retirement age to continue working for the same employer with a reduced work schedule or workload.

A phased retirement has advantages for both employees and employers. Employees benefit from the opportunity to continue active employment at a level that allows greater flexibility and time away from work, smoothing the transition from full-time employment to retirement. And employers benefit by retaining the services of experienced workers.

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