Harvard Joint Center for Housing Studies’ Post

As a parent, knowing that it will be dramatically more difficult for your children and their friends and contemporaries to achieve the financial stability and peace of mind that homeownership can bring is troubling. We need to create more affordable housing stock - and we need to make sure that includes a lot of for-sale housing stock. That is how we help the next generation (and the ones after that....) grow their wealth through asset creation and appreciation. An underutilized financing tool to help address both market and affordability gaps and to boost for-sale housing development is the New Markets Tax Credit. Let's ramp up its usage as one tool in an entire toolkit of tackling the affordable housing crisis. #nmtcsforaffordablehomeownership #affordablehousing #nmtcs #economicdevelopment

WSJ article on the US population of 65-year-olds. #retirement #demographics #aging #economy #boomers #wsj #savings About 4.1 million Americans will reach 65 years old this year, reaching a surge that will continue through 2027, according to an analysis by Jason Fichtner, executive director of the Retirement Income Institute and chief economist at the Bipartisan Policy Center. That is about 11,200 a day, compared with the 10,000 daily average from the previous decade, he says. Nearly 20% of Americans 65 and older were employed in 2023, which is nearly double the share of those who were working 35 years ago, according to a recent report from the Pew Research Center.  Close to two-thirds of 65 and older employees are working full time, compared with nearly half in 1987, he says. They’re earning more, too, with average hourly pay reaching $22 an hour in 2023, up from $13 an hour in inflation adjusted dollars in 1987, according to the Pew report. Many in this age group are working because they need the money now, or want to build a bigger retirement reserve so they don’t outlive their savings, says AARP’s Carly Roszkowski. They also enjoy their work, and the opportunity for ongoing learning and social connections, she says. https://lnkd.in/eX-kFc8u

Controversial opinion, but this article really hit home. Stagnant wages, a lack of career opportunities, flagging workplace pensions, and little social mobility are now real problems. Its everyone's problem, but businesses aren't meeting the challenge. There has never been more of a need for hardworking professionals to take control of their own financial and career futures, invest in themselves, and step out of the trap. What does your future look like? Are the steps you are currently taking building it? #taylorrosemw #taylorrose #careerswithoutlimits #noglassceilings #opportunitiesforall #socialmobility #buildyourownfuture #investinyou #yourfuture #stepoutofthetrap #consultancy #consultantlife https://lnkd.in/ew8Z8_TW

Unsolicited LIFE advice for Millennials: Thinking about and then starting to plan your retirement today is a privilege you shouldn’t let pass by. The statistics below will likely evolve over the next 30 years leading to fewer people between 60-64 being able to retire.

💭 Retirement food for thought...let's not pass up the privilege we have to plan for retirement. Additionally, we must consider and plan for generational wealth. Have conversations with the younger generation about business ownership, compound interest, diversified investments, maximizing tax efficiencies, wills and trusts, etc. They are like sponges for knowledge. If you're a parent, seed fund your children's investment and retirement accounts. Share those financial insights with them regularly so that they learn the risks and rewards of investing early.

How much do you need to retire comfortably in America? If you ask Gen Z and millennials, they'll tell you around $1.5 million. With potential cuts to Social Security benefits or having to finance longer life spans, younger generations are anticipating needing much more savings to live as comfortably as their parents and grandparents. The question is: What can financial professionals do to help them prepare?

Happy Friday! Very excited to bring this event to the area! ⚠️68% of Americans say they are not on track to retire: 🆘$12,800 is the average 401k balance for ages 20-29 🆘$43,100 is the average 401k balance for millennials ages 30-39 🆘$100,300 is the average 401k balance for ages 40-49 🆘$175,400 is the average 401k balance for ages 50-59 This all according to Forbes as of 2023! ⚠️67% of Americans have never made a financial plan ⚠️60% of Americans will get diagnosed with an illness with the leading cause being financial stress ⚠️63% of Americans are living paycheck to paycheck ⚠️An estimated 40% of divorces are due to financial problems. Would you say that America has a money problem? Let’s talk about it! Register here: https://bit.ly/3OVylzI

Will the world end before I can retire? From the moment Carolina graduated from college and started her first real job, the financial advice came pouring in. It felt like everyone she knew was telling her to save for retirement. So Carolina wants to know: really? Maybe that advice was good for boomers, Gen X and millennials, but the world Carolina would be saving for seems like it’s on the brink of collapse. So should Gen Z do things differently? Vox editor Bryan Walsh tells us how close we might be to an extinction-level event, and Vivian Tu a.k.a. Your Rich BFF offers some financial real talk. https://lnkd.in/geWAx3nx

When comparing your comparing your retirement savings to those 401(K) dashboards at work, parsing the data can be helpful: “Federal Reserve data shows that the average net worth among those aged 65 to 74 in 2022 was nearly $1.8 million. This figure is skewed by those at the upper end of the wealth spectrum, though. At the median, the average net worth of this age bracket was roughly $410,000, a figure that includes the values of homes and investments.”

It’s refreshing to see positive news about the financial health of my generation. While there are lots of jokes out there about avocado toast 🥑 and lattes ☕ derailing the financial goals of millennials (🏡 👨👩👧👦 💰), the truth is that many Millennials have gotten a great head start on saving for retirement. Anne Tergesen notes “Millennials are saving more and earlier largely because contributing to a 401(k) became the default in many plans. Unlike baby boomer and Gen X workers, many of whom delayed joining 401(k) plans, millennials were often automatically enrolled earlier in their careers. While those who are swept into plans can opt out if they don’t want to save for retirement, few do.” Regulatory changes with the Secure Act 2.0 will make auto-enrollment in 401ks the standard for more employees and hopefully continue this trend toward retirement security for younger generations. It will be interesting to see if these gains will be maintained as the impact of student loan payments, higher mortgage payments, and increased cost of living are more fully realized.