Here’s How Much Boomers Are Giving Their Kids
Money has always tended to flow from parents or grandparents to children and grandchildren, whether it’s as outright gifts, help with living expenses or paying for things like school. But the pace of that inter-generational transfer of wealth has picked up in recent years — and it could be threatening the retirement prospects of some baby boomers, according to a new report from the Employee Benefit Research Institute.
The report finds that the number of cash transfers going from older households to younger family members increased from 1998 to 2010. High-income households are more likely to provide support to their adult children, but middle- and low-income families are also providing cash to younger family members. Overall, from 2008 to 2010, households of adults aged 50 to 64 gave an average of $8,350 to younger family members, and households age 85 and older gave $4,787 to younger family members.
“For older households, cash transfers can reduce their retirement assets, raising concerns about retirement security, particularly for low-income groups,” EBRI research associate Sudipto Banerjee said in a statement.
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In just 5 percent of families, wealth is passed from the younger generation to the older, and the amounts are far smaller. During the same period, households age 85 and older received an average of $359 from those in younger generations.
The EBRI numbers confirm a trend highlighted in other recent reports. A 2013 Pew study found that about half of adults ages 40 to 59 have provided some financial support to at least one grown child in the past year, with more than a quarter of them providing the primary support.
Obviously, the economic climate of recent years may be a big reason for the increased cash flowing from parents to their grown children. More than half of parents of millennials think that it is harder for today’s young adults to live within their means than it was for them, according to an April Bank of America survey.
Meet Blade, the Uber for Helicopters in NYC
Uber may be convenient, but New York’s Hamptons set doesn’t always have the time or patience to deal with the traffic getting out to their summer spots on Long Island’s East End.
Blade, which calls itself “the first digitally driven short distance aviation company,” says it has a solution for those who want to get to East Hampton within the hour, or Southampton in 35 minutes: Ordering their own chartered helicopter via an app.
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Once you download the app, you can select your flight time, chill out in a Blade lounge at a Manhattan heliport and then enjoy “a snack, a drink, a newspaper and lots of other fun things” on your flight. Passengers are allowed one carry-on weighing 25 lbs. maximum — but no golf clubs.
The service, which launched in May 2014, doesn’t come cheap, at $595 per seat to go to Quogue, Southampton, East Hampton, Montauk or Fire Island. Blade can also be booked for trips to Nantucket, Martha’s Vineyard, Cape Cod and some other destinations in the Northeast as well as to the New York area’s major airports.
The website advises that if your flight is grounded due to bad weather, you’ll be offered a ride to your destination in a chauffeured Mercedes at no extra cost.
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The Best and Worst States for Student Debt
Where you go to college and what major you pick can have huge financial consequences, but where you live after graduating can also have a big impact on how much your diploma is worth — and how well you can handle your student debt.
How likely are you to land a good paying job? How high will your living expenses be? The answers to those questions and others like them go a long way to determining how burdensome those monthly student loans payments are.
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To ensure your loan doesn’t break you, experts suggest that your payment should not exceed 8 to 10 percent of your monthly income.
Unsurprisingly, the personal finance website WalletHub says, “Student-loan borrowers will fare better in states that produce a combination of lower college-related debt levels, stronger economies and higher incomes.”
To find those states, WalletHub looked at seven metrics, with special emphasis given to student debt as a percentage of average income, the local unemployment rate for people aged 25 to 34 and the percentage of borrowers aged 50 or older. Here are the 10 best and worst states for student debt. You can click on your state on the map below to see where it ranks.
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10 Best States for Student Debt
- Utah
- Wyoming
- North Dakota
- Washington
- Nebraska
- Virginia
- Wisconsin
- Minnesota
- Colorado
- South Dakota
10 Worst States for Student Debt
- Mississippi
- Rhode Island
- Connecticut
- Maine
- Georgia
- South Carolina
- New York
- Alabama
- West Virginia
- Oregon
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Why We’re Wasting Billions on Teacher Development
School districts spend an average $18,000 per year on teacher development, and teachers devote about 10 percent of their time to professional learning, but a new report finds that such programs may not be producing any measurable results.
The report, released today by TNTP, a nonprofit aimed at addressing educational equality, finds even with development programs, teachers do not show much improvement year over year, and the performance for the vast majority (70 percent) remained constant or declined over the past two to three years.
The report’s authors believe the lack of improvement stems from low expectations for teacher development and performance, and they suggest that schools need to rethink completely the ways that they measure teacher performance and the way they conduct student development.
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The study evaluated information on more than 10,000 teachers at three large school districts and a charter network covering nearly 400,000 students.
The authors report that teachers who do show improvement do not appear to be the result of deliberate, systemic efforts, and show no clear patterns that could improve development for others. “The absence of common threads challenges us to confront the true nature of the problem,” they write. “That as much as we wish we knew how to help all teachers improve, we do not.”
Rather than offer specific solutions, the authors suggest that schools redefine professional development, re-evaluate professional learning programs, and reinvent the ways they support teachers.
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Happy Watermelon Day! 16 Sweet, Juicy Facts You Didn’t Know
Frida Kahlo painted them and poets have celebrated them. In his “Ode to the Watermelon,” Pablo Neruda described it as “a fruit from the thirst-tree” and “the green whale of the summer.” He wrote: “its hemispheres open/showing a flag/green, white, red,/ that dissolves into/wild rivers, sugar, delight!” Abundant in summer, watermelons are by their very nature sweet and heavy, plus they’re full of vitamins: A, B6, and C. Aug. 3 is National Watermelon Day. We celebrate it here with 16 fun facts.
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- Watermelons are 92 percent water.
- The word “watermelon” first appeared in English dictionaries in 1615, according to John Mariani’s The Dictionary of American Food and Drink.
- Watermelons are related to pumpkins, as well as cucumbers and squash.
- The world’s largest watermelon was grown by Lloyd Bright of Arkadelphia, Arkansas in 2005 and weighed 268.8 pounds, according to the Guinness Book of World Records.
- Watermelons originated in southern Africa.
- They appear in Egyptian hieroglyphics nearly 5,000 years ago. Watermelon seeds were found in the tomb of King Tut.
- Early explorers carried watermelons on long trips as a source of water, like canteens.
- Watermelons are both fruits and vegetables.
- China is the largest producer of watermelons in the world today, followed by Turkey and Iran.
- The U.S. currently ranks fifth in watermelon production worldwide. Georgia, Florida, Texas, California and Arizona are the states that grow the most watermelon.
- On April 17, 2007, the Oklahoma State Senate passed a bill declaring watermelon as the official state vegetable.
- Over 1,200 varieties of watermelon are grown in 100 countries across the world.
- Watermelons were introduced to the New World by European colonists and African slaves. Spanish settlers started growing watermelon in Florida in 1576.
- One cup of watermelon has more lycopene, a pigment with antioxidant effects, than a large fresh tomato.
- You can eat the seeds. And the rind. Here’s a recipe for pickled watermelon rind.
- Are your muscles feeling sore? Have some watermelon before your next workout. The juice contains L-citrulline, which the body converts to L-arginine, an amino acid that helps relax blood vessels and improves circulation.
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Why Believing Donald Trump Will Be the GOP Nominee Is Delusional
Despite his commanding lead at this early stage among GOP candidates, the 2016 nomination is anyone’s game.
It is risky to put too much stock in the latest findings, including the NBC/Wall Street Journal poll released Sunday. That’s because the national telephone survey of 1,000 adults included only 252 registered voters who said they would vote for a Republican, and the poll has a margin of error of plus or minus 6.17 points.
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There are plenty of downsides to Trump’s candidacy – including his threat to mount a third-party campaign if he is denied the Republican nomination -- which has alarmed GOP leaders who are looking down the road to the general election.
Trump has the highest negatives of any of the top tier candidates, and a majority of Americans in the survey said they think Trump is hurting the Republican Party. Not surprisingly, the vast majority of Democrats interviewed said Trump was harming his party’s image, but nearly half the Republicans interviewed said the same thing.
Political analyst Nate Silver notes that Trump ranks just 13th in overall favorability among Republicans in a series of national polls. “If you’re going to imply that a candidate is popular based on their receiving 20 percent of the vote, you ought to consider what the other 80 percent thinks about him,” Silver wrote recently in his FiveThirtyEight blog. “Most Republicans who don’t plan to vote for Trump are skeptical of him instead.”
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What’s more, about three in four Latinos said they have a negative view of Trump – and that more than half consider his comments about lawless Mexican immigrants to be racist or highly inappropriate, according to a separate NBC News/Wall Street Journal Telemundo poll released today.
The survey of 250 Hispanic-American voters revealed widespread hostility towards Trump, with only 13 percent saying they have a positive view of him.
The Republican presidential frontrunner has said repeatedly that many Latino voters “love” and support him, and that he would win the majority of that vote if he ends up as his party’s nominee. There is little evidence in this poll to suggest Trump is dealing with reality.
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