Gender Earnings Deciphered

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You probably know that women earn less than men in the U.S. economy, but you may not realize that the gap is not going to close any time soon.  A study by the Institute for Women’s Policy Research (http://statusofwomendata.org/app/uploads/2015/02/EE-CHAPTER-FINAL.pdf), created by a rather large team of economists and researchers, compared the discrepancy between pay for men and women today vs. last year and prior years.  Then they extrapolated the year in which the two genders would be paid the same for the same positions and work responsibilities.

The answer: the year 2058.  To put that into perspective, the FutureTimeline.net website predicts that in the same year, humans will have established a colony on Mars.

The gender gap seems to be a cultural phenomenon.  Some states, like New York, Maryland, the District of Columbia, Vermont and Florida, have gender earnings ratios above 85%; that is, women, on average, are paid more than 85% of what men are paid.  But a woman living in Louisiana, West Virginia or Wyoming are likely to be paid less than 68% of their male counterparts’ salary, according to the study.  The gap also appears to grow as people become more highly-educated.  Women who have not earned a high school diploma tend to earn 73.8% of what men with comparable jobs are making, but if men and women both have a graduate degree, the women are earning just 69.1% of mens’ salaries.

About the Author: Bob Veres has been a commentator, author and consultant in the financial services industry for more than 20 years.  Over his 20-year career in the financial services world, Mr. Veres has worked as editor of Financial Planning magazine; as a contributing editor to the Journal of Financial Planning; as a columnist and editor-at-large of Dow Jones Investment Advisor magazine; and as editor of Morningstar’s advisor web site: MorningstarAdvisor.com.

Mr. Veres has been named one of the most influential people in the financial planning profession by Investment Advisor magazine and Financial Planning magazine, was granted the NAPFA Special Achievement Award by the National Association of Personal Financial Advisors, and most recently the Heart of Financial Planning Distinguished Service Award from the Denver-based Financial Planning Association. 

 

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Government Leaders and Leading Salaries

You probably know that the U.S. President makes $400,000 a year in salary.  But do you know how that stacks up with elected leaders in the rest of the world?

According to statistics compiled by Statistica.com, the U.S. President is actually pretty well-paid, earning more than Canadian Prime Minister Stephen Harper ($260,000), German leader Angela Merkel ($234,000), South African President Jacob Zuma ($223,500) and Russian President Vladimir Putin ($136,000).

Screen Shot 2015-04-03 at 12.02.48 PMThe chart shows that one leader outpaces everybody, however.  Former Singapore Prime Minister lee Hsien Loong earns more than the combined annual wage of the leaders of France, Germany, Italy, Japan and the United Kingdom combined.

But to put all of this into perspective, the average Wall Street salary came to $356,000 last year, plus bonuses averaging $175,000.  Morgan Stanley’s top executive, James Gorman, took home $22.5 million.

Source:  http://www.statista.com/chart/3350/pay-levels-of-world-leaders-in-perspective/

http://www.businessinsider.com/truth-about-stagnant-wall-st-pay-2015-3

http://www.wsj.com/articles/morgan-stanley-ceo-gorman-gets-25-raise-in-2014-1427919552

About the Author: Bob Veres has been a commentator, author and consultant in the financial services industry for more than 20 years.  Over his 20-year career in the financial services world, Mr. Veres has worked as editor of Financial Planning magazine; as a contributing editor to the Journal of Financial Planning; as a columnist and editor-at-large of Dow Jones Investment Advisor magazine; and as editor of Morningstar’s advisor web site: MorningstarAdvisor.com.

Mr. Veres has been named one of the most influential people in the financial planning profession by Investment Advisor magazine and Financial Planning magazine, was granted the NAPFA Special Achievement Award by the National Association of Personal Financial Advisors, and most recently the Heart of Financial Planning Distinguished Service Award from the Denver-based Financial Planning Association. 

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Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers

I’m not sure even what to say except that I want one of these mortgages! Also, I don’t imagine this ends well.

Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers

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Where the Money Comes From

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As the tax filing deadline approaches, Money Magazine has offered some interesting statistics on our annual ritual.  In the early months, the IRS says that roughly 83% of all returns have resulted in refunds, with an average refund of $2,893 per return.  In all, roughly eight out of ten filers qualify for a refund, and this year’s refund is in line with previous year averages.

Meanwhile, the IRS website notes that in the past few years, roughly 47% of Americans were below the threshold where they had to pay income taxes—which is where the famous “47 percenters” phrase came from in the Romney presidential campaign.  However virtually all of those Americans paid FICA taxes.  In all, 185.5 million income tax returns were filed last year, but only 34,000 estate tax returns and just 335,000 gift tax returns.  The government collected $1.64 trillion in individual income taxes, compared with $353 billion in business income taxes.  In aggregate, Californians paid the most taxes, at $369 billion, well ahead of Texas ($265 billion) and New York ($251 billion).  At the other end of the spectrum, the citizens of Vermont paid $4.3 billion and people and companies living in Wyoming paid $4.9 billion,

Finally, there’s an interesting comparison.  The King James Bible totals around 700,000 words, whereas the U.S. Federal Tax Code numbers 3.7 million words.

Sources:

http://money.cnn.com/2015/03/26/pf/taxes/average-tax-refund-irs/index.html?iid=SF_PF_River

http://facts.randomhistory.com/tax-facts.html

http://www.sars.gov.za/AllDocs/Documents/Tax%20Stats/Tax%20Stats%202014/TStats%202014%20Highlights%20WEB.pdf

http://www.irs.gov/uac/SOI-Tax-Stats-IRS-Data-Book

About the Author: Bob Veres has been a commentator, author and consultant in the financial services industry for more than 20 years.  Over his 20-year career in the financial services world, Mr. Veres has worked as editor of Financial Planning magazine; as a contributing editor to the Journal of Financial Planning; as a columnist and editor-at-large of Dow Jones Investment Advisor magazine; and as editor of Morningstar’s advisor web site: MorningstarAdvisor.com.

Mr. Veres has been named one of the most influential people in the financial planning profession by Investment Advisor magazine and Financial Planning magazine, was granted the NAPFA Special Achievement Award by the National Association of Personal Financial Advisors, and most recently the Heart of Financial Planning Distinguished Service Award from the Denver-based Financial Planning Association. 

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The Upper Uppers

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What does it take to be a “one percenter?” How much do you have to earn before you fall into this rarified zone?

A new study written by socioeconomists Estelle Sommeiller and Mark Price, looked at state-level tax data from the Internal Revenue Service over the past 35 years. They’ve created a chart which looks at annual income at the threshold of the top 1% in each U.S. state. If you live in Connecticut, you’re a “one percenter” if you earn more than $678,000 a year, higher than New York’s threshold of $506,000, the $539,000 threshold in New Jersey, $555,000 in Washington, D.C. or $532,000 in Massachusetts. California ($438,000) and Texas ($423,000), which are considered wealthy states, actually came in behind North Dakota ($502,000).

States with the lowest threshold include West Virginia ($243,000), Kentucky and Alabama ($263,000) and Maine ($274,000). If somebody earning a good income in Connecticut or New York wanted to break into the one-percent category, he/she could move to a less competitive state.

Nationwide, the total share of income going to the upper 1% rose by about 12 percentage points since 1979. The one-percenters in Connecticut make a little over 33% of all income in that state, and in New York, the percentage is 32.6%. Elsewhere, the range is generally in the 14% to 22% range, up from the 7-11% range back in 1979.

Source: http://blogs.wsj.com/economics/2015/01/27/inequality-is-not-just-about-wall-street-its-in-all-50-states/?utm_content=buffere638d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

About the Author: Bob Veres has been a commentator, author and consultant in the financial services industry for more than 20 years. Over his 20-year career in the financial services world, Mr. Veres has worked as editor of Financial Planning magazine; as a contributing editor to the Journal of Financial Planning; as a columnist and editor-at-large of Dow Jones Investment Advisor magazine; and as editor of Morningstar’s advisor web site: MorningstarAdvisor.com.

Mr. Veres has been named one of the most influential people in the financial planning profession by Investment Advisor magazine and Financial Planning magazine, was granted the NAPFA Special Achievement Award by the National Association of Personal Financial Advisors, and most recently the Heart of Financial Planning Distinguished Service Award from the Denver-based Financial Planning Association.

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An Independent Fiduciary

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