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Most Millionaires Credit Hard Work And Smart Saving As Keys To Financial Success

No Silver Spoon: Most Millionaires Credit Hard Work And Smart Saving As Keys To Financial Success

– Few Gain Wealth Through Inheritance Or Spouse, PNC Survey Finds –

PHILADELPHIA, Jan. 21, 2014, Most American millionaires cite smart saving over investment choices as the key ingredient to their financial success and very few have benefited from inheritance or a rich spouse, according to the PNC Wealth and Values Survey.

Saving early and regularly is named most often (56 percent) as the personal decision that most influenced their financial success, according to the survey by PNC Wealth Management, a member of The PNC Financial Services Group, Inc. (NYSE: PNC). Controlling spending (38 percent) and making good investment decisions (38 percent) were next, while “earning a lot of money” is fourth on the list, mentioned by 26 percent. Even fewer cite an inheritance (12 percent) or marrying someone with money (3 percent) as significant.

Asked to rank the greatest influences, two-thirds (65 percent) said “hard work” followed by good decisions (16 percent), discipline (8 percent) and luck (7 percent).

“For individuals who aspire to be millionaires, the survey results are positive.  The most likely path to building wealth is not through inheritance, marriage or luck,” said Joseph Jennings, director of investments for PNC Wealth Management.  “Most of the millionaires surveyed have controlled their own destiny by working hard and saving early and regularly.  These are personal choices over which we all have control.  This indicates that the ‘American dream’ is still very much alive.”

Other Findings
The seeds of success were planted early for most American millionaires, but they have yielded an outcome that goes beyond what they expected. Three out of four (76 percent) expected as they were growing up that they would be successful financially but most (81 percent) express pleasant surprise at the scale of their success.

Slightly more than one third (36 percent) have accumulated at least $1 million within the last decade, with the same number (36 percent) having done so within the past 10-20 years.  Fewer than one in three (28 percent) have had at least this much money for more than 20 years.

Most millionaires (53 percent) say that whatever financial acumen they have is largely self-taught, but the vast majority (77 percent) now work with a financial professional to help manage their wealth. For most, the relationship is very much a collaboration; fewer either delegate most decisions to their advisors or rely solely on their own judgment.

American millionaires report that now they are more at peace and enjoying life more, whereas 10 years ago they were much more likely to be pushing to achieve more.

Most have been able to move beyond a concern about saving enough for retirement (a key priority now for just 8 percent) or paying down debt (a priority for just 2 percent). Now they are most concentrated on having enough money to live comfortably in retirement (the top concern for 57 percent).

Preservation of capital continues to be the main focus for this group, cited more than twice as often (51 percent) as accumulation (23 percent) as a major concern.

An online media kit containing survey highlights and background information are available on PNC’s website at http://www.pnc.com/pncpresskits.

The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. Follow @PNCNews on Twitter for breaking news, updates and announcements from PNC.

Survey Methodology
The Wealth and Values Survey was commissioned by PNC to identify attitudes about wealth among high-net-worth individuals, how it affects their lives and their needs in managing wealth. Artemis Strategy Group conducted the online survey in September and October 2013, 923 interviews were completed nationally including 473 with assets of $1 million or more, including 169 with $% million or more. Sampling error for 473 respondents is +/- 4.1 percent at the 95 percent confidence level. DISCLAIMER: This report was prepared for general information purposes only and is not intended as specific advice or recommendations. Any reliance upon this information is solely and exclusively at your own risk.

The survey was designed and managed by HNW, Inc. (www.hnw.com), an integrated marketing and technology firm with a focus on financial services and understanding and connecting with the affluent. The survey was supported by Artemis Strategy Group (www.ArtemisSG.com), a communications strategy research firm specializing in brand positioning and policy issues.

This report has been prepared for general informational purposes only and is not intended as specific advice or recommendations. Information has been gathered from third party sources and has not been independently verified or accepted by The PNC Financial Services Group, Inc. PNC makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. PNC cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Any reliance upon the information provided in the report is solely and exclusively at your own risk.

CONTACT:

Alan Aldinger
(412) 768-3711
alan.aldinger@pnc.com

SOURCE:

PNC Wealth Management

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Employment Finance Personal Finance

Most Women Working Today Will Not See Equal Pay during their Working Lives

Most Women Working Today Will Not See Equal Pay during their Working Lives

WASHINGTON, Sept. 18, 2013, 2012 earnings figures released by the U.S. Census Bureau yesterday do not hold much good news for women. Real earnings have failed to grow, and the gender wage gap is at the same level as it was in 2002.  Women’s median annual earnings for 50 or more weeks of full-time work in 2012 were $37,791, compared with $49,398 for men, a gender earnings ratio of 76.5 percent. Real earnings did not increase compared to 2011, and the typical woman earned $11,607 less in 2012 than the typical man.

“Progress in closing the gender wage gap has stalled during the most recent decade. The wage gap is still at the same level as it was in 2002,” said Dr. Heidi Hartmann, President of IWPR. “If the five-decade trend is projected forward, it will take almost another five decades—until 2058—for women to reach pay equity. The majority of today’s working women will be well past the ends of their working lives.”

A new fact sheet released today by the Institute for Women’s Policy Research, maps the gender earnings ratio since 1960 and analyzes changes in earnings during the last year by gender, race, and ethnicity. While there is a gender earnings gap between women and men of each major racial/ethnic group, the median earnings of all women are below those of white men. During 2012 the median annual earnings of Hispanic women were only $ 28,424, just 54 percent of the median annual earnings of white men, and at a level that would qualify a woman head of a family of four to receive food stamps.

“While there is no silver bullet for closing the gender wage gap,” said Ariane Hegewisch, a Study Director at the Institute for Women’s Policy Research and author of the fact sheet, “strengthened enforcement of our EEO laws, a higher minimum wage, and work/family benefits would go a significant way towards ensuring that working women are able to support their families without having to rely on welfare.”

The Institute for Women’s Policy Research (IWPR) is a 501(c)(3) tax-exempt organization that conducts rigorous research and disseminates its findings to address the needs of women and their families, promote public dialogue, and strengthen communities and societies.

SOURCE:

Institute for Women’s Policy Research
http://www.iwpr.org

 

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Employment Finance Government News Personal Finance

America’s Poor Working Hard But Still Falling Behind

America’s Poor Working Hard But Still Falling Behind

New Oxfam America poll reveals harsh realities in the world’s most unequal rich country

WASHINGTON, Aug. 28, 2013, As the nation prepares to mark Labor Day, Oxfam America released the findings of a new poll commissioned to explore the realities of America’s working poor. The survey reveals that America’s low-wage workers have a fierce work ethic and believe that hard work can pay off.  However, they hold jobs that trap them in a cycle of working hard but unable to get ahead and with little hope for economic mobility.

The survey, which was conducted on Oxfam America’s behalf by Hart Research Associates, found that most low-wage workers barely scrape by month-to-month, are plagued by worries about meeting their families’ basic needs, and often turn to loans from family and friends, credit card debt, pawn shops and payday loans, and government programs just to get by. The poll also found that the workers facing the greatest challenges are also the most vulnerable, and that includes parents, women, and those making less than $10 per hour.

“For tens of millions of low-wage American workers, Labor Day is another long day on the job—doing hard work, often at irregular hours, for low pay and few benefits,” said Raymond C. Offenheiser, president of Oxfam America. “As our nation struggles to recover from the Great Recession, there is little recovery for a quarter of American workers who are stuck in low-wage jobs. Our country is now the most unequal rich country in the world, and has the largest percentage of low-wage workers of any advanced economy.”

Oxfam’s survey shows that in addition to inadequate incomes, low-wage workers also face challenges and obstacles that make it difficult to maintain basic job security and to find paths for advancement. Almost a third of those surveyed reported that they have no workplace benefits, such as paid sick leave, health insurance or paid vacation time. And one in six reported having lost a job in the last four years because they got sick or had to take care of a child or family member. A majority of the working poor surveyed believe that it is more common for middle-class people to fall out of the middle class than for low-income people to rise into the middle class.

“Poverty in the US looks very different from poverty in the developing countries where Oxfam often works,” said Offenheiser. “But what is the same – be it in the world’s richest country or its poorest– is the injustice of a society in which a few are mind-bogglingly rich, some are doing well, and too many are working hard but simply can’t make ends meet.”

A majority of low-wage workers reported that they believe that government has a responsibility to ensure that everyone has enough to eat, has access to health care and a roof over their head. But they also believe that government policy is slanted toward benefiting the rich rather than helping the poor get ahead.

“Despite their struggles, our survey finds that low-wage workers don’t want hand-outs; they want a level playing field. They want fair wages, decent working conditions, and dignity,” continued Offenheiser. “A majority of the working poor support a higher minimum wage, help in making child care more affordable, and expanding the earned income tax credit.”

Note: According to the Gini index, the most commonly used measure of inequality, the United States is the wealthiest nation with the largest difference between the poorest and richest.

Oxfam America is a global organization working to right the wrongs of poverty, hunger, and injustice.  We save lives, develop long-term solutions to poverty, and campaign for social change.  As one of 17 members of the international Oxfam confederation, we work with people in more than 90 countries to create lasting solutions. To join our efforts or learn more, go to www.oxfamamerica.org

 

SOURCE:

Oxfam America
http://www.oxfamamerica.org/

 

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Government Real Estate

Strengthening Housing Market Pushing Economy Forward

2013 Mid-Year Outlook: Economic Growth On the Road to “Normal”

 

Strengthening Housing Market Pushing Economy Forward

WASHINGTON, June 13, 2013 – The U.S. may be well into a prolonged period of steady economic growth, but it hasn’t yet reached its full potential, according to Fannie Mae’s (OTC Bulletin Board: FNMA) Economic & Strategic Research Group. Fiscal headwinds are expected to keep growth to below 2.0 percent for the first half of the year, with gradual strengthening in the second half of 2013 and into 2014. However, as fiscal drags wane, growth should continue to move in the positive direction amid an ongoing recovery in housing, rising household wealth, and expanded energy production.

“At the outset of the year, we forecasted that 2013 would witness sustainable but below-par growth as the economy begins its transition to more normal levels. Halfway through the year, our view is little changed,” said Fannie Mae Chief Economist Doug Duncan. “We expect approximately 2.1 percent growth over the course of 2013, up from the anemic pace of 1.7 percent in 2012. This is consistent with the incremental improvement seen over the past few years but still below the economy’s potential. Our forecast calls for growth to push past 2.5 percent in 2014, boosted largely by tailwinds from the strengthening housing market.”

Housing was largely positive entering the spring/summer season, with various indicators such as home prices, home sales, and homebuilding activity showing signs of long-term improvement toward normal levels. Despite rising mortgage rates during the past month, which have affected refinance originations, affordability conditions remain high and should not present a significant obstacle to potential homebuyers.

For an audio synopsis of the June 2013 Economic Outlook, listen to the podcast on the Economic & Strategic Research site at www.fanniemae.com. Visit the site to read the full June 2013 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, Housing Forecast, and Multifamily Market Commentary.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

Fannie Mae enables people to buy, refinance, or rent a home.

Visit us at: http://www.fanniemae.com/progress

Follow us on Twitter: http://twitter.com/FannieMae

SOURCE:

Fannie Mae

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Books Education Finance Financial Analysis Financial News MBA News Personal Finance Students

The Necessity of Finance Book Press Release

Maverick new book details complexities of finance

Professor Anthony M. Criniti IV offers a fresh look at the science of wealth management in “The Necessity of Finance”

PHILADELPHIA – In “The Necessity of Finance” (ISBN 0988459507), Dr. Anthony M. Criniti IV breaks down the complex details of the financial world into easy-to-digest terms any layman can understand and even master. Finance is a completely separate field from economics and as such, Dr. Criniti sets out to explain real-world topics that investors and “financialists” need to inculcate into their ideological portfolio.

Global wealth accumulation is at its highest levels ever. There are more billionaires and oligarchs living today than at any other time in human history. Yet as the American and global financial system has come under critical scrutiny in recent years, consumers and ordinary citizens are seeking answers about the world of finance. Why is money important? Is it merely ink and paper or digits on a computer screen. Why does finance matter? How might we come to understand its many intricacies which act as a multi-dimensional jigsaw puzzle? The answers will both interest and surprise readers.

“Most of the major theories developed in finance were created by economists, physicists, mathematicians, etc. Finance, although highly interrelated with many other subjects, is a separate field of study that is often confused with others,” says Dr. Criniti. “With world wealth accumulating to its highest point in history, the necessity to understand this subject is more crucial than ever.”

Readers will learn what the difference between money and wealth is and will find answers to many of life’s financial questions. What is risk and return? What kinds of investments exist? What are the different techniques for selecting investments? And what role does ethics play in finance? The author has created a true page-turner able to clarify the definition, purpose and goals of both finance and economics while exploring financial concepts in a straightforward manner.

The Necessity of Finance” is available for sale online at Amazon.com.

About the Author:

Dr. Anthony M. Criniti IV is a former financial consultant and a current professor of finance at several universities.  He earned a PhD in applied management and decision sciences, with a concentration in finance. A native of Philadelphia, he has also received many financially related designations, including CHFC, CLU, REBC, and RHU. Dr. Criniti is an active investor and has traveled the world studying various aspects of finance. He is also the author of the acclaimed finance book, The Necessity of Finance and the newly released The Most Important Lessons in Economics and Finance.

MEDIA CONTACT:

Dr. Anthony M. Criniti IV

E-mail:                                 info@learn-about-finance.com

Web:                                    http://learn-about-finance.com/

REVIEW COPIES AND INTERVIEWS ARE AVAILABLE UPON REQUEST