It’s time for another round of good reads from the team here at Fort Pitt. Check it out:
First is a short piece from MarketWatch.com by Elizabeth O’Brien, “401(k) contribution ‘max’ to rise to $18,000 for 2015.” According to the IRS, next year’s elective contribution limit for employees who participate in 401(k)s will increase to $18,000, from $17,500. According to a recent survey, 401(k) participants between ages 50 and 64 were not aware of their annual max, and contributed an average of $6,673 to their plans in 2013, less than half the 2013 limit. This suggests that individuals may not do anything differently with a higher limit, which is unfortunate. Employees, particularly younger ones, should be doing all they can to max out contributions.
Mark Steyn’s “Inside the plot against the middle class,” is a New York Post article examining the fate of the middle class. Examples of the war on the middle class include student loans, which are offered as “help for middle class”, but are nothing more than a subsidy to academic elites, carbon taxes, and environmental and anti-sprawl strictures in suburban areas.
Exactly where can the inflation-adjusted income growth be found? “Where the rising wages are,” by Tyler Durden of ZeroHedge.com details the growth in median inflation-adjusted income – and it varies by education level. The bottom line: the only individuals who’ve seen increasing real incomes are those who have specialized, post-graduate educations.
Lastly, “How savings grows the economy” by Dan Sanchez of Mises Daily highlights Peter Schiff’s comic book “How an economy grows and why it doesn’t.” The comic strips teach important economic principles through light-hearted stories.