Today's gig economy is creating both opportunity and problems for millions of Americans. Gig workers include those who devote at least some of their time to providing ride-hailing services, short-term rentals of their homes or delivery services. One powerful example is Uber. The ride hailing service, which launched its initial public offering earlier this year, said over 1.5 million active Uber drivers received more than $3 billion in payments in 2017. Active Uber drivers earn an average monthly income of about $364. Uber and other gig economy players such as Airbnb, Lyft and Doordash employ workers as freelancers or independent contractors. They typically receive income that's reported on Form 1099 for self-employed workers. And that usually means (unless they have another job as an employee at a company) they have personal responsibility for a lot of things, including saving for retirement. The best retirement savings strategy for gig workers includes setting up a retirement … [Read more...] about How gig economy workers can save for retirement
Set up a retirement plan
NEW YORK — With 2019 more than one-third over, small business owners without employee retirement plans may want to consider starting one before more time passes. Businesses get tax deductions for the contributions they make to employee plans, and contributions can be as high as $56,000 per employee for 2019. Plans vary in terms of their complexity and cost to set up. And the IRS offers flexibility for when contributions must be made — it's OK, for example, to make a contribution in 2019 for the 2018 tax year, up until the due date of the owner's tax return. That means owners who filed for extensions of this year's March or April filing deadlines still have time to make contributions and get a deduction for last year. And it's still possible to create one type of plan known as a SEP. While retirement plans are one of the benefits that help attract and retain workers, surveys and government reports in recent years have shown that many small and mid-size businesses don't offer … [Read more...] about Time for businesses to set up employee retirement plans?
It’s financial literacy month, do you know where your retirement is? CNBC Chairman Mark Hoffman rings the NASDAQ opening bell today to kick off the special month, created in 2003 to teach Americans how to establish and maintain healthy financial habits. Americans can sure use help with retirement. Baby boomers, in particular, have not saved nearly enough for retirement. They’re going to live longer than they think, and if trends continue, many will run out of money before they die. Just look at the state of the three “legs” of the retirement “stool:” private savings, pensions, and Social Security. Private Savings: Let’s start with private savings. At Vanguard, the average 401(k) account value for an investor age 65 and older is $192,877 in 2018, but that number is inflated by a small group of long-time super-savers. The median balance among the age group, where half have more and half have less, is a measly $58,035. Average that out over 20 … [Read more...] about There’s a Retirement Crisis in America Where Most Will Be Unable to Afford a ‘Solid Life’
Last year, Americans spent more than $80 billion playing state lotteries, that's around $250 for each citizen, more than what was spent on concerts, sporting events and movie tickets combined. Over 25 states took in more from their lottery proceeds than from corporate income tax. Because of these stakes, it's essential that, in both perception and reality, lotteries are truly games of chance, everyone entering with an equal opportunity to win. Which is why investigators took note when a retired couple from Michigan, Jerry and Marge Selbee, made $26 million winning various state lottery games dozens of times. This is not a story, though, of a con, or a scam, or an inside job. No, this is a ballad of a couple from small-town America who did something that most people only dream of. They didn't so much as beat the lottery odds as they figured them out. For years, high school sweethearts Jerry and Marge Selbee lived a quiet life in Evart, Michigan, population 1900. A single-stoplight … [Read more...] about How a retired couple found lottery odds in their favor
By Maki ShirakiTOKYO (Reuters) - Nissan Motor Co Ltd <7201.T> plans to boost the number of external board members and set up a committee to oversee compensation as part of its effort to improve governance following the arrest of former Chairman Carlos Ghosn for financial misconduct, a source said.gi Critics have said Nissan lacked adequate governance, with few truly independent voices on the board capable of questioning Ghosn and looking out for regular shareholders’ interests.The company has not yet decided how many more external board seats to add, according to the source, who has knowledge of the matter but requested anonymity as the talks are still confidential.The current three external board members include retired Renault SA <RENA.PA> executive Jean-Baptiste Duzan, considered to represent the views of the French automaker which is Nissan’s biggest shareholder. The other two external board members are former bureaucrat Masakazu Toyoda and racing car driver … [Read more...] about Nissan to boost external board seats, set up compensation committee