Baby boomers are still the lucky ones – Financial Times

When we are ignorant about the future, sometimes we should just accept it rather than speculate about what might happen next. We do not know how the election of Donald Trump as US president will affect the UK economy. His economic policies — fiscal stimulus and trade barriers — are unclear and contradictory. Even if we knew their details, we would still be uncertain of their effects.

When you don’t know the shock and are unconvinced about your model, any predictions you make will be right by chance alone. At times like this we should stick to what we know.

For the next four years, UK economic policy will still be clearing up the mess in the public finances from the 2007-09 financial crisis. Regardless of whether that work is close to completion by the time of the next US presidential election in 2020, we will then experience the first bills of a rapidly ageing population falling due. The combination means there will be no respite from our recent challenges in meeting the public’s desire for better standards of living in the 2020s.

There might, of course, be a miraculous surge in the productivity of Britain, enabling much faster growth of output, income and tax revenues without more people and toil. Fairies might also wave a giant magic wand, but we would be wise to rely on neither.

Unlike the next president’s policies, the economics of ageing is simple to track. Britain’s birth rate grew rapidly between 1955 and its peak in 1964, so the flows of people reaching the state pension age, 66 from 2020, will intensify through the next decade. Add to this the fact that average per capita spending on healthcare increases rapidly after people reach 65, and the pressures on the public purse become obvious.

The Office for Budget Responsibility is set to publish more gloomy projections of longer-term public spending costs early next year, but even its most recent figures still show health, long-term care and state pension costs adding 1.8 per cent of national income to public spending between 2020 and 2030. To pay for that would require the doubling of revenues from all capital taxes — inheritance tax, capital gains tax and stamp duties.

Even using the OBR’s extremely optimistic assumptions that the underlying size of the UK economy will grow 4.8 per cent a year in the 2020s — generating optimistic income tax revenue forecasts — ageing leads to a larger deficit: a worsening of the budget deficit by 1.5 per cent of national income during the next decade. Taxes will rise without anyone feeling the state has become more generous and before any government can use the power of taxation and public spending to help people “left behind” and “just about managing”. They will not be at the front of the queue for government help because there will be the bills of pensioner baby boomers to pay.

Both by luck and by sheer weight of numbers, the baby-boomer generation is the lucky one. It is set to receive at least 15 per cent more public spending over their lifetimes than they pay in tax. Subsequent generations, particularly those born after the 1970s, will pick up the tab, paying in significantly more than they receive.

Surveys show baby boomers are not heartless money-grabbers. They care about their children and grandchildren’s plight. But they have also voted this year in favour of greater benefits for themselves, against higher immigration which would help to pay the bills and, in the 2015 election, against building sufficient property to keep housing costs for younger people under better control.

Although we expect Mr Trump’s presidency to offer opportunities and threats to Britain’s prosperity, population ageing is a fact of life. The country will soon have to deal with the bills from a large generation that has always succeeded in getting others to pay.

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The Toyota Motor Story – How Was Lexus Born?

It was more than a philosophical matter for Toyota Motor because of the money involved. The company, while comfortably in the black, could ill afford to pursue a misguided vanity project. But some argued it stood to lose more from staying out of the luxury market than by jumping in when its most loyal customers – baby boomers – were moving into their peak earning years and would soon be looking to buy more expensive cars. Toyota Motor wanted a high-end product line to prevent these loyal customers from defecting to other brands. The idea was to build a gilded bridge between the compact-car buyers of today and the luxury-car buyers of tomorrow. What’s more, it also needed to safeguard its revenue in an era of increased U.S. import barriers, to stay neck-and-neck with Japanese rivals who were planning their own luxury lines, and to keep its engineers motivated with new challenges.

At home, it sold the stately Century, a boat of a car with a 5.0-liter V-12 engine, used to chauffeur Japanese CEOs and cabinet ministers around the crowded streets of Tokyo. The often empty front passenger seat on this and other Japanese luxury cars was built with a removable cushion so that the back-seat passenger could stretch his legs through to the front seat. But at the equivalent of US$125,000, the car was deemed too expensive to compete in the mass luxury market in the U.S. Besides, Toyota Motor needed to update its export line-up with a car-lover’s car designed primarily to be driven by its owner, not a stately limousine to be driven around in.

Most significantly, Toyota Motor sensed opportunity. Present manufacturers of high end vehicles had risen and gone beyond the needs of the brand new era of car purchasers. Hence, Eiji Toyoda presented the strategy to penetrate towards the high end market. 6 years along with 50 percent of a billion dollars later, the initial Lexus was born. To Toyoda, it was not a matter of cost, only a matter of time. In his words: “For us, this was not only a tremendous challenge and a dream to fulfill but also an inevitable decision.” Yet even the most zealous proponents of a Japanese luxury-car program in the early 1980s could scarcely imagine what Toyota Motor would unleash upon unsuspecting rivals a decade later.

The company’s luxury division, the Lexus brand, has grown from a car enthusiast’s afterthought into the leading luxury brand in the U.S. It usurped Cadillac for that title in 2000 and has kept it ever since. In its debut year in 1989, sales of the untested brand’s two models – the flagship LS and entry-level ES sedans – totaled just 16,302 cars. Two years later it became the best-selling luxury import in the U.S. and had added a third model, the SC coupe. Today, just over two decades since the brand debuted, millions of vehicles sporting the Lexus L are being driven on the roads of America, a testimony not only to the brand’s popularity but also the durability of its cars. Indeed, it is not uncommon to see a vintage 1990 model year LS 400 or ES 300. Today, Lexus has expanded from the first two pioneer models to an industry-leading fleet of nearly a dozen different cars and SUBs, three of which have been added within the past two years.

Beazer sees housing boom in baby boomers – News & Observer

Beazer is seeing a baby boomer housing boom.

The Atlanta company’s traditional customers have been young families and other first-time buyers. It said Tuesday, however, that people 55 and older are increasingly the ones seeking the condos and smaller homes that it builds.

Baby boomers made up about 20 percent of the company’s business last year, and that number is growing, Beazer CEO Allan Merrill said.

Older adults are buying one-story homes or two-story houses with a master bedroom on the first floor, Merrill said. Beazer is now building condo communities aimed at baby boomers who want to downsize. Merrill said condos in these communities have been a “great financial success,” selling at a faster pace than single-family homes.

“This is a vibrant and growing part of our business and will remain so in the future,” he said.

Still, the housing recovery has been uneven.

The company reported a loss of $854,000 in the three months ending Sept. 30, after reporting a profit of $356.3 million in the same period a year earlier. The company benefited from a tax benefit of more than $320 million last year, and this year, it recorded $11.4 million in losses related to the early extinguishment of debt and an elevated tax provision.

Earnings, adjusted to extinguish debt and for non-recurring costs, came to 33 cents per share.

Revenue was $632.1 million in the period, slightly down from $632.9 million last year.

For the year, the company reported profit of $4.7 million, or 15 cents per share. Revenue was reported as $1.82 billion.

Shares of Beazer Homes USA Inc. fell 5 percent to $11.24 in afternoon trading Tuesday.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on BZH at https://www.zacks.com/ap/BZH

Illegal Questions During the Job Interview

You often here people speak about illegal job interview questions. In the United States laws have been passed to protect individuals from being discriminated against unfairly during their job search. It is very important to understand why a certain question is considered illegal and the laws that have been passed to protect us from discrimination.

A person cannot be discriminated against because of their race, color or nation of origin. The law that protects us from such discrimination is the Civil Rights Act of 1964. This law was also expanded to other groups in later years. A good example of a question that would not be acceptable under this law is; “Being a black man, how do you feel you will fit in with a predominately white female staff?”

Your religion can not be a factor in the hiring decision of the potential employer. The Civil Rights Act of 1964 also protects job seekers from this type of discrimination. A question during the job interview of “What religion are you?” would be considered illegal.

Sex, marriage and pregnancy cannot be weighed against a job seeker. The Equal Pay Act of 1963 insures that. A good example of a question that would not be inappropriate during the job search is “Are you planning on having any children in the near future?”

The Wagner Act of 1935 protects people from being discriminated against because of affiliations to groups a potential employee may have currently or in the passed. This is primarily focused on union membership. Because of this law a potential employer can not ask a question such as “Have you ever been a member of a union?”

A person’s age cannot legally be a factor in the hiring process. This protection is given under the Age Discrimination in Employment Acts of 1967. If during the job interview a job seeker is asked a question such as “How old are you and do you need health benefits?” they would be breaking the law.

Someone having a disability cannot negatively impact someone during the hiring process under the Americans with Disabilities Act of 1964. A question such as “Do you have any physical disabilities?” or “Do you seek any type of mental help?” is illegal.

Even though these types of questions are illegal many interviewers do ask them. Not because of any type of predetermined motive but because they are not aware they are breaking the law. Ignorance of the law is no excuse. If questions like these are asked and you feel uncomfortable answering them you are well within your rights not to.

Transamerica offers increased flexibility to Baby Boomers and Generation X in planning for retirement – PR Newswire (press release)

BALTIMORE, Nov. 14, 2016 /PRNewswire/ — A new living benefit is now available with most Transamerica variable annuities to enable Baby Boomers and Generation X to better plan their retirement income. The new optional living benefit allows lifetime income payments after age 59, and offers investors the opportunity for up to a 6% annual income payment rate for life if they begin drawing income anytime between ages 65 and 79. For investors who are concerned about planning for longer lives and rising costs as they age, the living benefit offers the opportunity for an annual payment rate of up to 7% for life if they defer drawing income until age 80 or later. These annual income payment rates are based on a single life withdrawal after five complete rider years.

“We know that Baby Boomers and Generation X are looking to fill the income gap between Social Security payments and their retirement income needs. That’s why Transamerica is offering new options to help people plan their retirement income,” said Joe Boan, senior vice president with Transamerica. “This living benefit offers investors the financial security of lifetime income payments.

“People’s longer life spans have increased the need for careful retirement income planning,” Boan continued. “That’s why we made sure this living benefit allows investment flexibility because more years in retirement mean that some people would like to stay invested in stocks longer to allow for potential growth. Transamerica’s new living benefit allows people to invest up to 60% of the portfolio in stock funds, as long as 20% of the portfolio is invested in a stable account and 20% is invested in select options including bond funds. Stocks typically fluctuate more than bonds or cash, and we know that market fluctuations can have an impact on your retirement savings, especially if a market downturn happens right before you plan to retire. With this new Transamerica living benefit, your future income can be protected against market declines, even if the value of your investments fluctuates,” Boan added.

With the Transamerica Income EdgeSM living benefit, if investors wait five years after investing to begin taking lifetime income, they will automatically receive a 1% increase on their withdrawal percentage. If investors purchase this living benefit prior to age 65, they will automatically receive an additional 1% increase on their withdrawal percentage if they don’t begin taking income until age 65 to 79, or an additional 2% increase on their withdrawal percentage if they don’t begin taking income until age 80 or later. The Transamerica Income EdgeSM living benefit is available with a Transamerica variable annuity for an additional cost and must be elected at the time the contract is issued. Because people may need to adapt to life’s changes, every five years customers will have the ability to cancel the living benefit if it no longer fits their plans. The living benefit can be elected by customers of any age up to 85. The living benefit withdrawals are available only after the first rider anniversary following the investor’s 59th birthday.

To learn more about Transamerica Income EdgeSM, visit www.transamerica.com/individual/products/annuities/annuities-benefits/living-benefits/transamerica-income-edge.

About Transamerica
With a history that dates back more than 100 years, the Transamerica companies are recognized as leading providers of life insurance, savings, retirement and investment solutions, serving millions of customers throughout the United States. Transamerica works to Transform Tomorrow® for those who entrust its dedicated professionals with their financial needs, helping them take the necessary steps to achieve their long-term goals and aspirations. Transamerica’s 10,000 employees serve nearly every customer segment, providing a broad range of quality life insurance and savings products, individual and group pension plans, as well as asset management services. In 2015, Transamerica fulfilled its promises to customers, paying more than $6.9 billion in insurance and annuity benefits, including return of annuity premiums paid by the customer. Transamerica’s corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa. Transamerica is part of the Aegon group of companies. Aegon is one of the world’s largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2015, Aegon managed $768 billion in revenue generating investments. For more information, visit www.transamerica.com.

About Transamerica Variable Annuities
Variable annuities are long-term, tax-deferred vehicles designed for retirement purposes and are subject to investment risk, including possible loss of principal. Variable annuities are issued by Transamerica Life Insurance Company in Cedar Rapids, Iowa, and Transamerica Financial Life Insurance Company in Harrison, New York (Transamerica). Annuities are underwritten and distributed by Transamerica Capital, Inc. Transamerica Financial Life Insurance Company is licensed in New York. All guarantees, including optional benefits, are backed by the claims-paying ability of the issuing insurance company. For more information, visit www.transamerica.com/individual/products/annuities. All policies, living benefits, and forms may vary by state, and may not be available in all states. Rider form numbers are ICC16 RGMB510616(IS), ICC16 RGMB510616(IJ), NIC16 RGMB510616(IS), and NIC16 RGMB510616(IJ).

For more information on a variable annuity please go to www.transamerica.com for prospectuses. You should consider the objectives, risks, charges, and expenses of an investment carefully before investing. Read them carefully before you invest.

Media inquiries:

Gregory Tucker
443-475-3017
[email protected]

Julie Quinlan
213-742-5134
[email protected]

IEVA-PR (11/16)

Logo – http://photos.prnewswire.com/prnh/20150723/240884LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/transamerica-offers-increased-flexibility-to-baby-boomers-and-generation-x-in-planning-for-retirement-300361919.html

SOURCE Transamerica

Related Links

http://www.transamerica.com

How Do I Meet a Doctor Online to Date? A Clever, Free Approach!

A lot of women ask themselves: how do I meet a doctor online to date? The answer comes in the next few paragraphs.

Most women, like yourself, find it next to impossible to find a doctor to date. The main problem being: no niche dating sites exist for it! Since there are no dating sites aimed at women looking for dates with doctors, we cannot take the usual route.

What you need to do is join a big, name-brand dating site. These sites tend to have more members than the populations of small countries (typically, membership populations are over ten million people for the biggest dating sites). Moreover, they have very clever advanced search technology; perfect for our goals.

Another feature of these popular dating networks is they tend to give entirely free memberships to women; premium features included. Most people do not realize this fact. More female members tend to encourage more paying male members, so the bigger dating sites are happy to offer women memberships at no cost.

Once you have a profile, you need to go to the page on the site that allows you to search for men. The better sites allow you to search for men based on keywords. So, for example, you can select men seeking women in your town, but refine that search by typing in the word “doctor”.

You will then be given a list of local men who have the word doctor on their profile page. Although not all will be doctors, and you will certainly have to scan some profiles and do some reading, this is a clever way for you to find local doctors who are looking for dates with women like yourself.

Baby boomers show right way to react to Trump victory – OCRegister

I was proud of my country this week, though judging by the reaction of many colleagues, friends and family members, that reaction is atypical. I’m not happy that Donald Trump won: I’m an old-school journalist who doesn’t take sides in elections I cover. What’s pleasing is the reaction to Trump’s victory among the much-maligned official Washington establishment, especially President Obama and Hillary Clinton.

I’m also proud of the baby boom generation. Apparently, we still have something to impart to our youngers. Grace under pressure, for one thing: How to lose with class and keep your chin up. This is a teachable national moment, and those who had the most to lose by Trump’s upset win rose to the occasion.

Think how painful this defeat was for Hillary Clinton, not least because she never saw it coming. She woke up on Tuesday, Nov. 8, expecting to become the 45th president of the United States, the first female to hold that exalted office. Although Clinton can take solace in the fact that more Americans wanted her in office than didn’t — she won the popular vote — she lost the Rust Belt states to Trump, and with them, the presidency. She waited until it was clear that Trump had prevailed in the Electoral College before conceding, and she did it with great dignity.

“This is painful and it will be for a long time,” Clinton said in words no listener could possibly doubt. She also said she hoped Trump would “be a successful president for all Americans.” She added that her supporters were obliged to accept Trump’s presidency, even root for him to succeed.

“We owe him an open mind and a chance to lead,” she said.

I have two daughters who voted for Clinton. Both were distraught when she lost. The older one put her two little girls in matching Hillary-for-President T-shirts and posted their photos on Election Day. Thinking of millions of such girls, Mrs. Clinton lamented that she hadn’t busted that “highest and hardest glass ceiling,” while expressing confidence it will happen someday, “hopefully sooner than we think right now.”

Hillary was speaking hours after conceding to Trump in a phone call both sides described as civil and heartfelt. For his part, the winning candidate sounded similar grace notes. He used the same words as Clinton, vowing to be the president “for all Americans,” and went out of his way to laud her.

“Hillary has worked very long and very hard over a long period of time, and we owe her a major debt of gratitude for her service to our country,” Trump said.

A third actor in this drama, the outgoing president, spoke minutes after Clinton did. He, too, had a lot at stake in this election: Trump and the Republicans are hell-bent on repealing Obamacare. Yet, Barack Obama reminded many Americans why they fell in love with him in the first place. Speaking in the Rose Garden in front of 100 grim-faced White House aides, President Obama said, “It is no secret that the president-elect and I have some pretty significant differences. But remember, eight years ago, President Bush and I had some pretty significant differences.”

Obama went on to tell the nation something primarily known by presidential scholars until now: the extraordinary efforts made by George W. Bush and his wife and daughters to ensure a smooth transition of power eight years ago. “We are now all rooting for [Trump’s] success in uniting and leading the country,” Obama said. “The peaceful transition of power is one of the hallmarks of our democracy.”

The problem is that a disturbing number of young people didn’t get the word. In Oregon, an anti-Trump protest march in downtown Portland turned into a riot as youthful demonstrators chanted, “We reject the president-elect!”

At a Los Angeles protest, a young Latina openly called for a violent response to Trump’s election. “There will be casualties on both sides,” she told a CNN camera crew. “People have to die to make changes in this world.”

“I’m just really terrified about what is happening in this country,” 22-year-old Adriana Rizzo told reporters at a Chicago protest while holding a sign reading: “Enjoy your rights while you can.”

On Twitter the hashtag #NotMyPresident was all the rage.

The only right answer to this is, of course, no, no, no, and no. One of the “rights” that Americans enjoy is free elections; marching because your side lost is protesting democracy itself. You “reject” the president-elect? How does that work? If Hillary had won, could Idaho conservatives reject her, too? Could they call for the spilling of blood — presumably your blood? Hashtag or no hashtag, he is your president.

But I’m not complaining. It’s nice to be needed if only to impart this one last lesson: Repeat after me: If you lose, even to someone you detest, shake their hand. President Obama did it. First lady Michelle Obama invited Melania Trump for tea in the White House — and never even mentioned Melania’s plagiarized convention speech. When others go low, this first lady really does take the high road.

At 52, Michelle Obama was in the final wave of baby boomers. She arrived in the last year of that noisy, rebellious, disruptive, talented and self-absorbed cohort of post-World War II Americans — 76 million strong — born between 1946 and 1964.

Seventy-year-old Donald Trump was at the vanguard of that great demographic wave.

The Donald was first swaddled in mid-June 1946 in Queens, N.Y. Three weeks later, George W. Bush arrived in New Haven, 75 miles away from Trump. Down in Arkansas, William Jefferson Clinton — his family then knew him as Billy Blythe — came along in August of ’46. A year after that, his future wife, Hillary Rodham, was born in Chicago.

Barack Obama, 55, is from the later stages of the baby boom. He was born in 1961, the same year as Billy Ray Cyrus, a baby boomer who did his part, as it turns out, in properly raising his precocious daughter Miley. Contemplating a Trump presidency earlier this year, Miley Cyrus promised on Instagram, “I am moving if this is my president! I don’t say things I don’t mean!”

Well, most of us say things we don’t mean — hopefully that includes much of what President-elect Trump said in the campaign — and after the election Miley Cyrus revealed she’s not relocating to Europe or anywhere else.

“So Donald Trump, I accept you,” she said in a video while wearing her achy-breaky heart on her sleeve. “I even accept you as the president of the United States and that’s fine, because I think now I want to be a hopeful hippie.”

Peace out, sister.

Carl M. Cannon is executive editor and Washington Bureau chief of RealClearPolitics.

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