Shrinking salary driving Americans to tap social insurance

Windsor Genova – Fourth Estate Cooperative Contributor

Charlotte, NC, United States (4E) – Americans’ personal income has been diminishing since the late 1980s, according to a study by Wells Fargo Securities (WFS), the investment banking division of Wells Fargo & Co., the fourth largest bank in the U.S. by assets and the largest bank by market capitalization.

Wages and salary of the average American fell from 59 percent of personal income in 1980 to a mere 51 percent, said study authors and WSF economists John Silvia and Sarah Watt House.

Silvia and House cited three reasons why Americans are getting less money from their jobs. The first is aging baby boomers and longer life expectancy of Americans.

With a larger population of retirees, more Americans are likely cashing in on retirement savings and obtaining personal income on assets, the two said.

The growing pension eligibility and use of social insurance programs also contribute to falling personal income, the authors said.

The third factor is rising rental income, which has risen noticeably since 2000, as more households look to allocate capital to rental property to supplement labor income.

A fourth factor is unfavorable labor market dynamics. Firms have been cautious to hire given the modest and uncertain gains in final demand, said the authors. Firms also are increasing their hiring abroad to serve markets there. Moreover, an excess supply of labor relative to demand has kept wage growth muted thereby restraining labor income even as hiring has improved.

With shrinking personal income, many have been seeking other sources of income to cope with the rising cost of living. One way is by investing in stocks.

The ultimate goal in buying stocks or investing is to generate a return on your investment. The amount of income to be generated can be expressed via the return on equity ratio. Mostly, companies generate income through assets. The more earning assets a company buys using shareholder money, the better the return on equity will be.

But stock investing brings a different set of challenges to neophytes who chose it to prop up their finances. It could be very taxing as stock prices fluctuate on a daily basis. Aside from a volatile market, investors are also plagued by fear, greed, hope and ignorance when trading in stocks.

To avoid losing investment in stocks, investors must remember to not buy stocks but companies. A company is like a brand and like a brand, a company makes a stock valuable. Before investing in a company, the investor must study the balance sheet of that company and learn how much profit it is making.

The investor also must invest in education to fully understand the ABCs of stock trading. Learning is power and applying knowledge in investing is always a wise decision.

One of the companies that offer online investment education is InvestView Inc. (OTCQB: INVU).

InvestView provides and delivers a comprehensive online program of investor education using proprietary investor search tools and trading indicators, weekly newsletters and access to live weekly Trading Rooms.

“Our goal at InvestView has always been to provide the best investor education for our members and we feel strongly that this new platform will help us to continue to deliver on that promise,” said Dr. Joseph Louro, chief executive officer of InvestView.

“InvestView has a strong history in providing some of the best investor education in the industry. Leveraging the power of social collaboration, they will now be able to give their members an entirely new way to learn how to invest, as well as providing a social community for their active investor network,” said Trader|OS CEO David Elias.

Traders today needs to access content from any device, anytime, anywhere. In partnership with TraderOS LLC, InvestView offers the Trader|OS, a real-time social collaborative charting, news and communication platform for traders.

With Trader|OS, traders can connect with other experienced traders, use real-time social collaborative trading tools, access the platform on the cloud and on mobile, and discover premium content from InvestView’s broadcasters. Broadcasters also benefit by building their brand and efficient distribution of content.

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