Friday Financial Five – September 4, 2015
Friday, September 04, 2015
Dan Forbes, GoLocalProv Contributor
Solid economic data amidst a market whirlwind
Investments suffered over the last month as big, small, real estate, international and, especially, emerging market holdings have all been hit hard. While the problems in China and the impending U.S. rate hike take center stage, positive economic news keeps rolling in domestically. Jobless claims are still at historically low levels with the most recent number coming in at just over 280,000. GDP numbers were strong in the second quarter and income is rising, however modestly. Interest rates remain low, while there is some evidence of a pullback in home sales. There remains a disconnect between economic and market forces and all will be taken into account at the FOMC’s September meeting.
Almost all states vulnerable in terms of retirement security
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST
The National Institute on Retirement Security’s most recent scorecard rates each state in terms of retirement readiness for future retirees. The analysis includes state residents’ projected retirement balances, marginal tax rates, and availability of employment for older workers. According to the report, California, Florida, and South Carolina are least prepared to handle the economic needs of those heading for retirement. Best prepared to handle retirement include Wyoming, Alaska, Minnesota and North Dakota. The state by state scorecard can be found here.
The Trump “wealth tax”
The wealth tax discussion that comes up from time to time may be part of the Donald Trump presidential agenda. Years ago, Trump supported a one-time 14.25% tax on holdings over $10 million. This was in accordance with wiping out the national debt and wholly funding Social Security. While Trump hasn’t made it a prominent part of his current platform, he hasn’t completely dismissed it. At this point, taking this action would only address a portion of the debt.
Deflategate’s economic impact
On top of the complete waste of time for all those involved and those who meticulously followed the Deflategate scandal, there were some economic impacts to keep in mind. The Patriots paid $1 million in fines for a scandal that apparently never took place. The NFL, while staying in the news all off-season, severely damaged its brand and billion dollar revenue stream by attacking one of the all-time greats of the sport, who has consequently seen a dramatic rise in jersey sales. Brady gets to keep four games worth of paychecks, so everyone can sleep at night knowing he won’t go hungry. Like a bitter divorce, there’s an unnecessary spending of millions attributable to the investigation and legal fees. And the billion dollar gambling industry must now discern other inventive ways players might try to give their teams an unfair advantage.
A Ponzi scheme to pay back Ponzi scheme victims
In what might be a first, a scam artist convicted of running a Ponzi scheme concocted a new Ponzi scheme to pay off the victims of his first ploy. The SEC announced a final judgement this week for an individual whose original scheme in 2000 landed him in jail. He went to prison for three years and emerged as a self-help guru. Between 2006 and 2010, he and others sold promissory notes to more than 140 investors, sometimes guaranteeing a 33 percent return. Those funds were then used to pay back victims of the initial fraud, while also buying cars, jewelry, and trips. In the court’s final judgement, the perpetrators were ordered to pay nearly $20 million in restitution and penalties.
Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. 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.
_400_400_90_400_400_90.jpg)
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
_400_400_90.jpg)
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 – April 10, 2015
- Friday Financial Five – April 3, 2015
- Friday Financial Five – April 17, 2015
- Friday Financial Five – May 1, 2015
- Friday Financial Five – May 8, 2015
- Friday Financial Five – March 27, 2015
- Friday Financial Five – March 20, 2015
- Friday Financial Five – February 20, 2015
- Friday Financial Five – February 27, 2015
- Friday Financial Five – March 6, 2015
- Friday Financial Five – March 13, 2015
- Friday Financial Five – May 15, 2015
- Friday Financial Five – May 22, 2015
- Friday Financial Five – July 24, 2015
- Friday Financial Five – July 17, 2015
- Friday Financial Five – July 31, 2015
- Friday Financial Five – August 7, 2015
- Friday Financial Five - August 14, 2015
- Friday Financial Five - July 10, 2015
- Friday Financial Five – July 3, 2015
- Friday Financial Five – May 29, 2015
- Friday Financial Five – June 5, 2015
- Friday Financial Five – June 12, 2015
- Friday Financial Five – June 19, 2015
- Friday Financial Five - August 21, 2015
Enjoy this post? Share it with others.
_400_400_90_400_400_90.jpg)
_400_400_90.jpg)
