Finance

Nearly 60% of Americans say $100K income required to curb expenses anxiety

Published

3 months ago

September 24, 2024

Storch Advisors CEO Gerald Storch discusses the state of the American consumer ahead of the holidays on ‘Varney & Co.’

With Americans still feeling the pinch of higher prices, many believe they would have to take home at least $100,000 a year to not fret about everyday living expenses, newly-released data showed.

Edelman Financial Engines on Monday said 58% of Americans said their concerns about day-to-day expenses would be lessened if they received that level of yearly income.

Higher percentages of Americans in their 30s and 40s said they had to make at least $100,000 compared to older age groups, the company found. For those in their 30s, the share was 71%, while 75% in their 40s cited that figure.

woman counting money at modern office (iStock / iStock)

Those findings were part of the company’s latest “Everyday Wealth in America” study that surveyed 3,000 Americans 30 years or older, including 1,500 “affluent” individuals aged 45-70, online between June 12-July 3.

INFLATION RISES 2.5% IN AUGUST, LESS THAN EXPECTED

Meanwhile, for one-fourth of all Americans, $200,000 was the yearly salary necessary to banish stress about everyday expenses, Edelman Financial Engines reported.

A couple reviews their finances at home. (iStock / iStock)

The data comes as Americans have been contending with high inflation and costs of living for quite some time.

In August, inflation measured by the Consumer Price Index went up 0.2% month-over-month and 2.5% year-over-year in August, which the Bureau of Labor Statistics called the “smallest 12-month increase since February 2021,” FOX Business previously reported.

The costs of food and shelter have been pain points for U.S. consumers. The prices for food in August remained 2.1% higher than a year ago, while shelter was up 5.2% in the same time frame, according to the CPI.

Edelman Financial Engines’ wide-ranging study also showed just 12% of Americans view themselves as wealthy.

GET FOX BUSINESS ON GO BY CLICKING HERE

Nearly two-thirds of Americans that don’t put themselves within that category indicated that having $1 million would make them feel wealthy, according to the data.

About 44% of Americans “see credit cards (versus other types of debt) as the biggest threat to their ability to build wealth,” per the study.

Edelman Financial Engines’ Amin Dabit said in a statement accompanying the newly-released study that Americans “aren’t feeling overly confident about the state of their finances.”

Woman looking at paper bill and counting expenses, Planning budget and home finance management (Lazy_Bear/iStock / Getty Images)

“Part of these worries stem from external pressures, like inflation or a turbulent election economy, while some are individual pressures, such as family responsibilities and mounting credit card debt,” he said. “Through this research, we’re learning more about how these different factors all come together to impact the way Americans perceive and achieve their wealth.”

COST-OF-LIVING CRISIS KICKS OFF THE HARRIS, TRUMP DEBATE

Overall, the economy and personal finances were major drivers of anxiety for Americans, with 49% calling the former their “biggest source” and 48% saying the latter, Edelman Financial Engines found. About 37% said politics.

Building emergency savings, growing wealth and saving for retirement were among the “top 3” financial goals reported by Americans this year.

Eric Revell contributed to this report.

Finance

Treasury delays deadline for small businesses to file new BOI form

Published

13 hours ago

December 26, 2024

Business Finance News

Janet Yellen, U.S. Treasury secretary, on a tour of the Financial Crimes Enforcement Network (FinCEN) in Vienna, Virginia, on Jan. 8, 2024.

Valerie Plesch/Bloomberg via Getty Images

The U.S. Treasury Department has delayed the deadline for millions of small businesses to Jan. 13, 2025, to file a new form, known as a Beneficial Ownership Information report.

The Treasury had initially required many businesses to file the report to the agency’s Financial Crimes Enforcement Network, known as FinCEN, by Jan. 1. Noncompliance carries potential fines that could exceed $10,000.

This delay comes as a result of legal challenges to the new reporting requirement under the Corporate Transparency Act.

The rule applies to about 32.6 million businesses, including certain corporations, limited liability companies and others, according to federal estimates.

Businesses and owners that didn’t comply would potentially face civil penalties of up to $591 a day, adjusted for inflation, according to FinCEN. They could also face up to $10,000 in criminal fines and up to two years in prison.

However, many small businesses are exempt. For example, those with over $5 million in gross sales and more than 20 full-time employees may not need to file a report.

Why Treasury delayed the BOI reporting requirement

The Treasury delayed the compliance deadline following a recent court ruling.

A federal court in Texas on Dec. 3 had issued a nationwide preliminary injunction that temporarily blocked FinCEN from enforcing the rule. However, the 5th U.S. Circuit Court of Appeals reversed that injunction on Monday.

CNBC Small Business Survey finds confidence rising among small businesses

“Because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline,” according to the FinCEN website.

FinCEN didn’t return a request from CNBC for comment about the number of businesses that have filed a BOI report to date.

Some data, however, suggests few have done so.

The federal government had received about 9.5 million filings as of Dec. 1, according to statistics that FinCEN provided to the office of Rep. French Hill, R-Ark. That figure is about 30% of the estimated total.

Hill has called for the repeal of the Corporate Transparency Act, passed in 2021, which created the BOI requirement. Hill’s office provided the data to CNBC.

“Most non-exempt reporting companies have not filed their initial reports, presumably because they are unaware of the requirement,” Daniel Stipano, a partner at law firm Davis Polk & Wardwell, wrote in an e-mail.

There’s a potential silver lining for businesses: It’s “unlikely” FinCEN would impose financial penalties “except in cases of bad faith or intentional violations,” Stipano said.

“In its public statements, FinCEN has made clear that its primary goal at this point is to educate the public about the requirement, as opposed to taking enforcement actions against noncompliant companies,” he said.

Certain businesses are exempt from BOI filing

The BOI filing isn’t an annual requirement. Businesses only need to resubmit the form to update or correct information.

Many exempt businesses — such as large companies, banks, credit unions, tax-exempt entities and public utilities — already furnish similar data.

Businesses have different compliance deadlines depending on when they were formed.

For example, those created or registered before 2024 have until Jan. 13, 2025, to file their initial BOI reports, according to FinCEN. Those that do so on or after Jan. 1, 2025, have 30 days to file a report.

There will likely be additional court rulings that could impact reporting, Stipano said.

For one, litigation is ongoing in the 5th Circuit, which hasn’t formally ruled on the constitutionality of the Corporate Transparency Act.

“Judicial actions challenging the law have been brought in multiple jurisdictions, and these actions may eventually reach the Supreme Court,” he wrote. “As of now, it is unclear whether the incoming Trump administration will continue to support the Government’s position in these cases.”