The Education 529 Channel

Household Incomes: The Value of Higher Education

What is the value of education for household income? The Census Bureau's annual survey data for 2018 published in September gives us some interesting insights into this question. The median income for all households with a householder age 25 and older was $64,761. The chart below shows the median annual household income for nine cohorts by educational attainment. We've rounded the data points to the nearest $100, e.g. $64.8K for all households age 25 and older.

Baby Boomer Employment Across Time

The 20th century Baby Boom was one of the most powerful demographic events in the history of the United States. We've created a series of charts to show seven age cohorts of the employed population from 1948 to the present.

College Planning: Is the ROI in the College or the Major?

Over the course of 20+ years, families have been bamboozled into spending trillions on top-end colleges, while overlooking the fact that it's actually the academic major that is far more important.

Long-Term Trends in Employment by Age Group

The Labor Force Participation Rate (LFPR) is a simple computation: You take the Civilian Labor Force (people age 16 and over employed or seeking employment) and divide it by the Civilian Noninstitutional Population (those 16 and over not in the military and or committed to an institution).

The Ratio of Part-Time Employed: November 2019

Let's take a closer look at Friday's employment report numbers on Full and Part-Time Employment.

ISM Non-Manufacturing: Slower Growth in November

The Institute of Supply Management (ISM) has now released the November Non-Manufacturing Purchasing Managers' Index (PMI), also known as the ISM Services PMI. The headline Composite Index is at 53.9 percent, down 0.8 from 54.7 last month. Today's number came in below the forecast of 54.5 percent.

What Advisors Don’t Understand About Prospects

Few of us realize the anxiety-ridden mindset that drives prospects to seek a financial advisor. If they did, they would structure their initial meetings very differently.

The Top 10 Books to Give to Clients (or Anyone Else!) as Holiday Gifts

Books can be the best gifts for family, friends, colleagues and clients. Here are my top 10 for your holiday gift-giving – along with how we can customize orders for financial advisors.

Visualizing GDP: An Inside Look at the Q3 Advance Estimate

The accompanying chart is a way to visualize real GDP change since 2007. It uses a stacked column chart to segment the four major components of GDP with a dashed line overlay to show the sum of the four, which is real GDP itself. Here is the latest overview from the Bureau of Labor Statistics.

S&P/Case-Shiller Home Price Index: September

With today's release of the September S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index were up 0.4% month over month which is cut to 0.1% with inflation adjustment.

Is the Shift to Passive Investing Increasing Risks?

Earlier this year, passive management was attacked in two high-profile articles. Those criticisms were proven to be false – and driven by active managers seeking to protect their livelihoods. But that still left the question, which I now examine, of whether flows to passive funds have increased certain risks.

Two Reasons US Equities May Keep Climbing into 2020

There’s an old adage called “climbing a wall of worry” that’s used to describe a situation where markets continue to climb in the face of uncertainties. Certainly there is no shortage of uncertainties today, yet US stocks have clawed their way to new all-time highs. Franklin Equity Group Portfolio Manager Grant Bowers recognizes there may be a few cracks emerging, but says there are still two main reasons to be optimistic about the outlook, and believes there is still room for US equities to run in 2020.

How The "SECURE Act" Will Affect Americans' Retirement

1. Overview – What is the “SECURE Act”? 2. The Retirement Savings Crisis in America 3. One Potentially Serious Knock on the SECURE Act 4. SECURE Act is Currently Tangled Up in the Senate

The College Tuition and Admissions Probability Estimator

College is expensive. We all know that – and that is why parents come to financial advisors to talk about how they’ll pay for it. What you and your clients’ families may not be aware of is that the posted tuitions are rarely the price anyone pays. College tuition discounts vary widely and the methodology used to calculate tuitions is not disclosed by any college.

Beneath the Surface

A review of last month’s market-moving events across countries and asset classes.