Friday Financial Five – May 27, 2016
Friday, May 27, 2016
Dan Forbes, GoLocalProv Contributer
Home prices increase across the country
Across the United States, hot real estate markets are causing elation and some concern as areas that suffered heavily in the financial crisis have rebounded and then some. There are bidding wars in several areas, from Boston to San Francisco. A housing bubble shouldn’t sneak up on anyone given how recent the last one was, but there are signs of one brewing. According to growth detailed by the Federal Housing Finance Agency, prices are up almost 6 percent from the first three months of this year versus 2015. This includes 1.3 percent growth in the first quarter of 2016, despite twelve states experiencing declines.
CEO pay on the rise
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST
Last week, the income story was President Obama changing the landscape for overtime pay. This week, Equilar and the Associated Press released a study on CEO compensation. According to their analysis, the CEOs at the largest companies received a raise last year of 4.5 percent and a median income almost touching $11 million. Less than fifty percent of the typical CEO pay comes in salaried cash, meaning the rest comes in the form of stock and/or options. The highest paid CEO on the list was Expedia’s Dara Khosrowshahi at nearly $95 million.
Plan for Puerto Rico’s debt
After months of negotiations, there may be an actionable plan in place to address the $70 billion Puerto Rico debt crisis. Overseen by House speaker, Paul Ryan, the Puerto Rico pact may be palatable for both sides of the political aisle. While some Republicans look at the bill as another bailout for leaders that haven’t shown the proper amount of fiscal oversight, some Democrats worry the terms may be too punitive for the territory’s residents. With both sides giving in a bit, the deal should have the backing to get passed this summer.
Senate votes down the DOL rule
In another anticipated move, Senate Republicans and a few Democrats approved a resolution to overturn the Department of Labor’s new fiduciary rule. The resolution will get vetoed by the president, and there aren’t enough votes in either the House or the Senate to override the veto. The rationale behind the rule’s opposition is that increased compliance costs will lead to higher investment fees and the inability to effectively serve those with more modest means. More likely, it means financial companies will have to implement a viable workforce that operates in clients’ best interest in a cost effective manner. That could mean a reduction in the number of advisors.
Prince’s death prompts estate planning awareness
Acknowledging estate planning holes and taking action is one of the biggest financial weaknesses people face. A silver lining to Prince’s passing might be the wave of people getting their estate planning situated, according to Reuters. After Prince’s passing on April 21st, some legal websites saw activity increase by fifty to sixty percent, including huge numbers looking to meet with an estate planning attorney.
Dan Forbes, a CFP Board Ambassador, is a regular contributor on financial issues. He leads the firm Forbes Financial Planning, Inc in East Greenwich, RI and can be reached at [email protected].
Related Slideshow: RI Business Rankings in US
See how Rhode Island stacked up.
View Larger +
Prev
Next
WalletHub
Rhode Island has 2015's eighth highest insurance premium penalties for high risk drivers, according to a WalletHub report.
Rhode Island ranks fifth overall in the category of speeding over 20 mph annual premium increase at $482. While ranking third overall in the category of 2 accidents annual premium increase at $2,721.
Rhode Island ranks ninth overall under the reckless driving annual premium increase at $749.
View Larger +
Prev
Next
WalletHub
Rhode Island has been ranked as the 8th most eco-friendly state in the country, according to a recent study by WalletHub.
Rhode Island ranks third in environmental quality and 16th in Eco-Friendly Behaviors Ran landing them in 8th overall.
RI is behind Washington and New Hampshire who are in the six and seven spots respectively, and in front of Connecticut and Hawaii who come in at the nine and ten spot.
View Larger +
Prev
Next
WalletHub
Rhode Island is 2015's 4th Worst State to be a taxpayer, according to a recent WalletHub report.
Rhode Island ranks 48th of 51 with an average state and local tax price of $7,159 which is good for a 27% difference from the national average.
The states that are directly behind Rhode Island are Wisconsin at $7,159, Nebraska at $7,298 and Illinois at $7,719 for a 37% difference from the national average.
View Larger +
Prev
Next
WalletHub
Rhode Island has the highest vehicle property taxes in the country, paying an average of $1,133 according to a report from WalletHub.
Virginia and Kansas are the two states just ahead of Rhode Island in the 49 and 50 spots, paying $962 and $905 respectively.
RI also ranks 42nd in average real estate tax, paying an average of $2,779, according to the WalletHub report.
View Larger +
Prev
Next
Gallup
Providence-metro ranks at the bottom for job creation in 2014
Rhode Island has been ranked amongst the worst in job creation, according to a recent survey done by Gallup.
Gallup gives the Prov-metro area an index score of 23, the lowest score is the New York- New Jersey area with 20.
Salt Lake City, Utah and Austin-round Rock, Texas rank the highest with a score of 37.
See the rest of the rankings here.
View Larger +
Prev
Next
Forbes
The 2014 state rankings by Forbes has just been released and Rhode Island moved up two spots from #48 in 2013 to #46 in 2014.
What does Forbes say about RI's business environment"
After Michigan and Illinois, Rhode Island has experienced the third worst net migration out of its state in the country over the past five years. With a recent unemployment rate of 7.6%—lower than only Georgia and Mississippi—residents are leaving the state in search of jobs. Rhode Island has been stuck in the bottom five overall for six straight years. One plus: labor costs are 5% below the national average, which stands out in the expensive Northeast.
View Larger +
Prev
Next
Tax Foundation
Findings from The State Business Tax Climate Index were released this morning by Tax Foundation which found Rhode Island to have the 45th best tax climate for businesses for 2015. The state's rank has not changed since last year after The Index analyzed 100 different tax variables in multiple categories.
Read more about the report here
View Larger +
Prev
Next
Thumbtack/Kauffman
Providence is the second worst city in America for small business, according to a new survey conducted by Thumbtack.com and the Kauffman Foundation.
More than 12,000 small businesses in 82 cities across the country participate in the survey. Providence received an overall "F" grade for small business friendliness.
Full Survey Results Here.
View Larger +
Prev
Next
The Economist
Small Business Friendliness Grade: F
The Economist grades states on an A+ to F grading scale for its small business climate. Rhode Island is one of just 6 states to earn an "F" grade.
Overbearing bureaucracy and excessive licensing is stifling small business in America.
Read More About The Economist Grade Here
View Larger +
Prev
Next
Forbes
Forbes ranks each state in business costs, economic climate, and growth prospects. RI is third worst in 2013.
The most damning in the commentary:
After Michigan, Rhode Island has experienced the second worst net migration in the country over the past five years.
Read More About Forbes Ranking Here
View Larger +
Prev
Next
Tax Foundation
#46 Tax Foundation
Tax Foundation ranks each state in corporate tax rank, sales tax rank, and unemployment insurance tax rank.
Rhode Island and the other states in the bottom ten suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates.
Read More About Tax Foundation Ranking Here
View Larger +
Prev
Next
ALEC
#47 ALEC
ALEC ranks each state in economic performance and outlook.
Although Rhode Island ranked low in economic performance, a forward-looking forecast is based on the state’s standing in 15 important state policy variables. Some of these variables include top marginal personal income tax rate and sales tax burden.
Read More About ALEC Ranking Here
View Larger +
Prev
Next
Kauffman Foundation
#50 Kauffman Foundation
Kauffman Foundation ranks each state in entrepreneurship.
Entrepreneurial activity generally is highest in Western and Southern states
and lowest in Midwestern and Northeastern states.
Read More About Kauffman Ranking Here
View Larger +
Prev
Next
Free Enterprise
#47 Free Enterprise
Free Enterprise ranks each state in performance, exports, innovation + entrepreneurship, business climate, talent pipeline, infrastructure.
Rhode Island has continued to feel the direct impact and ripples from the recent recession—it ranks 47th overall in economic performance. However, positive rankings of 15th in talent pipeline and 16th in innovation and entrepreneurship suggest the existence of a foundation on which to build the future.
Read More About Free Enterprise Ranking Here
View Larger +
Prev
Next
Gallup
10th Worst in Gallup's Annual Ranking of State Job Markets 2014
Rhode Island has been ranked 10th worst for job creation in Gallup's annual ranking of state job markets in 2014 with a job creation index number of 21
Rhode Island is one of two (Connecticut) states to rank in the bottom ten each year since 2008.
The 2014 State level findings have were drawn from 201,254 interviews with employed adults across the nation.
See the full list of rankings here.
Related Articles
- Friday Financial Five – January 29, 2016
- Friday Financial Five – January 22, 2016
- Friday Financial Five – December 18th, 2015
- Friday Financial Five – February 5, 2016
- Friday Financial Five – February 12, 2016
- Friday Financial Five – January 15, 2016
- Friday Financial Five – January 8, 2016
- Friday Financial Five – December 4, 2015
- Friday Financial Five – December 11, 2015
- Friday Financial Five – February 26, 2016
- Friday Financial Five – April 22, 2016
- Friday Financial Five – April 8, 2016
- Friday Financial Five – April 29, 2016
- Friday Financial Five – May 6, 2016
- Friday Financial Five – May 13, 2016
- Friday Financial Five – April 1, 2016
- Friday Financial Five – March 4, 2016
- Friday Financial Five – March 11, 2016
- Friday Financial Five – March 18, 2016
- Friday Financial Five – March 25, 2016
- Friday Financial Five – May 20, 2016
Enjoy this post? Share it with others.