As we move into 2015, the latest Leading Economic Index offers a forecast of what to expect this winter. Ken Goldstein, Economist at The Conference Board, summarizes the situation for Advisor Perspectives. Those who are watching the jobless numbers continue to drop may anticipate a hike in interest rates from the Federal Reserve, but is this the case? Chicago Fed President Charles Evans has a different outlook on the numbers. The way your children view savings can greatly influence the likelihood that they will become millionaires. Vanguard examines the five common excuses that diminish their chances.
Conference Board Leading Economic Index Increased Again In November– The Conference Board LEI for the U.S. increased again in November. “The increase in the LEI signals continued moderate growth through the winter season,” said Ken Goldstein, Economist at The Conference Board.
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Fed Study Points To Jobs Weakness, Suggests Keeping Interest Rates Low- Another clue to the Federal Reserve’s rate calculations emerged with a Federal Reserve Bank of Chicago study. It concludes the U.S. labor market isn’t as healthy as a falling jobless rate suggests. Noting more people looking for work than headline numbers reflect, the report concludes that the “extra slack might imply that it would be appropriate for monetary policy to remain highly accommodative for longer than would otherwise be the case.”
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Don’t Let These 5 Excuses Keep Your Kids From Becoming Millionaires– According to Vanguard projections, a 20-year-old investor who begins saving $200 per month in a Roth IRA, invested in a portfolio of 80% stocks and 20% bonds, would have about a 55% chance to accumulate over $1 million by age 65. On the other hand, if a 30-year-old investor follows the same program, the likelihood of being a millionaire drops to 14%.
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Merry Christmas!
John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller