Millennials are ambitious when it comes to financial freedom

Alyssa Pry

When is the right time to become financially independent? Many millennials are – perhaps surprisingly – more eager to pay their own way at younger ages than when baby boomers think they should.

In a new survey by Bankrate, millennials and baby boomers were asked what ages were most appropriate to begin paying for housing, buying a car, and paying their cellphone bill. The ages millennials chose were younger than what baby boomers thought was appropriate.

For example, when it came to paying rent, 33% of millennials surveyed thought they should be on their own by age 22. Just 8% thought parents should help with rent between the ages of 26 and 29. The majority of baby boomers surveyed chose age 23 1/2 for when they thought millennials should pay rent without financial help.

Both demographics may be a little too ambitious. According to the US Census Bureau, there are around 24 million young people living at home with their parents. And for those on their own? Around 40% of people between 22 and 24 get financial help from their parents for living expenses.

Want to pay for something more in your price range? Millennials think 18 ½ is the best time to get off the family plan and start paying for your own phone. Baby boomers think 20 is the more appropriate age.

But expect to shell out major cash — a new iPhone 7 will set you back $769 without a contract. An unlimited data plan is typically $50-$90 a month before taxes. So staying on the family plan may be the more economical bet for financially savvy millennials — at $100-$200 a month for up to 4 people, think about sending a check to mom instead of to your phone carrier.

And when it comes to buying a car, millennials think those expenses should be their responsibility starting around age 20. Baby boomers said 22 is the more appropriate age to start paying for a car.

According to Bankrate, the survey showed that while millennials are often stereotyped as entitled, with the expectation of financial help from their parents, at least according to this survey, most millennials strive to be financially independent as early as possible.

But millennials face many challenges in actually making that happen, compared to baby boomers when they were the same age – the most important one being income. According to the Federal Reserve, millennials earn 20% less than baby boomers did at the same stage of life. Today, millennials have a median household income of around $40,500.

Also hindering financial freedom? Student loans: 42% of people between 18 and 29 reported having student loans, and the average millennial owes approximately $30,000.

The dream of financial independence and the reality of their current financial situation continues to be at odds for many millennials.

Wallstreetcheatsheet

UBS: Apple could be worth a lot more than people think-Seth Archer

Tim Cook

(Apple) The much anticipated iPhone 8 might lead to as much as a 24% increase in Apple's stock price, according to research from UBS.

Shares closed at $153.67 Tuesday, and according to UBS analyst Steven Milunovich, they could climb as high as $190. The average analyst 12-month price target for Apple's stock is $163.80, according to Bloomberg data.

In a note sent out to clients on Wednesday, Milunovich wrote he expects an iPhone "supercycle" to drive higher revenues for Apple. The iPhone 8 is rumored to be more of an upgrade than the previously released iPhone 7, which could lead to more consumers upgrading when the device is released later this year.

The iPhone 8 is expected to be sold at a higher price than previous versions, leading to higher revenues, according to Milunovich. His analysis is based on sales growth of 15%, at an average selling price of $730 per phone. The analyst consensus estimate for gross margin in 2018 is 38.2%, while UBS estimates it will be higher at 39-40%.

UBS raised its price target to $170, with an upside of $190. 

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Winning the battle against inflation: Your two minute wealth check from Nutmeg

Savings can be a tricky world - find out how yours weigh up

ByMolly Holt

How strong are you financially? Find out here

With the cost of living going up and salaries stagnating, it’s now more important than ever to have a robust financial plan. So how well prepared are you? Find out with this super-quick wealth check from Nutmeg, the award-winning online investment manager.

1. Your savings vs spending ratio

There is a popular personal finance rule called the 50:20:30. It suggests you should aim to use 50% of your post-tax income for all the necessities in life (your rent or mortgage repayments, utility bills and food), save or invest 20%, and spend the remaining 30% on your lifestyle choices (so that's the gym, holidays, restaurants, and so on).
Does that sound like you? Or do you need to do some budgetary management to get on track? If you can invest 20% of your salary each month - great. But if you need a little more inspiration, why not see how much your regular 20% investments might grow over time using Nutmeg’s free portfolio projection tool.

Ditch the paper and pen and opt for easy online calculators instead (Photo: Getty)

2. Rainy day fund

It’s commonly advised you should have three to six months’ salary in reserve as cash – i.e. in your bank and readily available. This rainy day fund is to help you sustain your living expenses should you be between jobs or need to manage another unforeseen life event.
Do you need to bolster your emergency fund? Or perhaps you have more than enough already stored up, in which case…

3. Put your money to work

Always make sure your surplus cash is working as hard as it can for you. If the interest you’re earning on your savings is below inflation, you’re effectively losing money. It’s worth shopping around for the best savings rates offered by the high street banks or to consider low-cost, high-performing investment products.
“Interest rates have been quite low for a while and inflation has hit its highest level in almost four years,” says Nutmeg CMO Katie Prentke English, “this is perhaps why frustrated savers are now considering investing rather than saving. Over the longer term, investing offers the potential for inflation-beating returns. Investing isn't easy per se, but getting access to smart wealth management is. You can open a Nutmeg portfolio online in less than 10 minutes with as little as £500.”

4. ISA: Use it or lose it

There is such a thing as too much money in the bank - be aware of other savvy saving options (Photo: Image Source)

Every year we get an ISA (individual savings account) allowance from the government. This year the allowance is £20,000 – the highest ever. You can save or invest any amount up to £20,000 into an ISA and any returns or interest you might make on your money in the ISA will be free of income tax and capital gains tax.
Are you making the most of your ISA allowance? Use Nutmeg’s ISA calculator to compare the typical returns you might expect from cash ISAs and stocks and shares ISAs.

5. Take the long road

Once you’ve sorted your budget and rainy day fund, and shopped around for inflation-beating savings or investing options for the medium and long term, your personal finances should be in a much better position.
But don’t forget to also think much further down the road – as having a longer-term financial plan is crucial. A key part of that plan is your pension... is yours sorted? Use Nutmeg’s online pension calculator to see if you’re on track to receive the retirement income you’d like.
Culled from Mirror pension

Police warn Biafra groups,  arrest IPOB members in Rivers State

By Charles Ogugbuaja

Ezeike warned that the Inspector General of Police, Idris Abubakar Ibrahim, has directed that unpatriotic elements should be dealt with by the security officers.

• Urge residents to ignore sit-at-home-order
The Imo State Commissioner of Police, Chris Okey Ezeike, has warned that his men would not allow any Biafran group hold the state to ransom in order to effect the sit-at-home directive by the Movement of Actualization of Sovereign State of Biafra (MASSOB), and the Biafra Independent Movement (BIM), in remembrance of the Biafra independence.
A statement yesterday by the Police Public Relations Officer (PPRO), Andrew Enwerem, a Deputy Superintendent of Police (DSP), urged those who are circulating publications on the order to desist or face the consequences.
He said: ‘’The attention of the Imo State Police Command has been drawn to the statements, claims, publications and posts circulating in the social media by groups who claim to be representing the Independent People of Biafra (IPOB), Movement for the Actualization of Sovereign State of Biafra (MASSOB) and Biafra Independence Movement (BIM), directing law abiding citizens and innocent Nigerians to sit at home on May 30, 2017 in remembrance of the struggle for Biafra independence. These publications are not only inciting but represent an unpatriotic and hostile propaganda against the sovereignty of the Nigerian state.’’
With the strong mobilization by pro-Biafra agitators, its organizers said yesterday that the exercise will record a 99 per cent compliance.Checks by The Guardian revealed that outside the peaceful procession held in Imo State by MASSOB and IPOB, members moved into local governments and communities in the zone for the exercise.
Several members of the groups were sighted at venues of yesterday’s Democracy Day celebrations distributing handbills. Leader of MASSOB, Uchenna Madu, enthused that the sit at home “will witness tremendous compliance of people.”
He dismissed stories making the round that her members would clamp down on anybody who tried to do any business or open shops today, stressing that “we are not going to harass anybody who wishes to open her shop or do any business. All we are saying is that, we will be surprise to see shops and businesses open because our people are in serious support of the cause we are pursuing.”
Ezeike warned that the Inspector General of Police, Idris Abubakar Ibrahim, has directed that unpatriotic elements should be dealt with by the security officers.The statement advised citizens to go about their lawful business and not to fall prey to the propaganda and directives of individuals or group of persons whose identity remains largely unknown.
It warned the parents and guardians to handle their children and wards in order not to join the group in destablizing the stateThe commissioner of police urged members of the public to go about their businesses without panicking.
Enugu State Police Public Relations Officer, Ebere Amaraizu, urged members of the public, who “may be threatened or forced to shut down their offices to report to nearby police station.’’
Meanwhile, Police in Rivers State  have  arrested some  members of the  Indigenous People of Biafra, IPOB, who were in a meeting  in   Rumuolumeni community in Obio/Akpor Local Government Area of the state.
It was gathered that  the incident started on Sunday night when security operatives stormed a venue in the community where IPOB members were gathered for meeting.
According to an eyewitness,  the IPOB members  had mounted their flags at  the meeting in view of its planned sit-at-home action billed for Tuesday before security operatives invaded the area.
The eyewitness disclosed that the  IPOB members, who were grieved by the police action, engaged the officers  in serious argument which almost led to a fight. When the argument intensified, the police started shooting in the air even as they used teargas to dispatch the meeting.
One of the IPOB members, King Okocha-Okparali, accused the police of molestation, harassment and illegal arrested of their members.When contacted, the Public Relations Officer of the Rivers Stated Police Command, Nnamdi Omoni said, there is an order directing commissioner of police in the states of the federation not to allow such gathering to hold.
Omoni said based on the order that the men of the force would not wait for further directives to dispatch such meeting.Meanwhile, the 82 Division Nigerian Army has denied that no shooting took at the venue or vicinity where the procession took place.
Also, there was no crisis or breakdown of law and order in Aba, Umuahia and in the whole of South Eastern part of Nigeria as to warrant/justify  “use of firearms’ as falsely and mischievously alleged by IPOB propagandists.
What is obvious, however, is an increase in the presence of security agencies on routine patrols in different locations in the region, particularly areas that are regarded as real or potential flash points. The aim is to pro actively checkmate possible security breaches in view of sordid/divisive utterances and in some cases blatant actions by secessionist agitators.

Culled from Guardian