Piggy banks filled with money are displayed on a desk during a "Save our economy" campaign by Korea Saemaulundong Centre in Seoul.
More parents are saving for college than ever before (Fidelity Investments)
The number of parents saving for college is at an all-time high of 69%, according to Fidelity Investments. The investment firm found 56% of millennial families surveyed are motivated to start saving early, because of their own student debt loads. However, just 35% are getting help from financial advisors. Fidelity says families who are using advisors are seeking help on: "strategies for efficient withdrawals of college savings; tax benefits of 529 plans; the financial aid/grant process; understanding their children's anticipated salary prospects after graduation; and determining the share of costs they and their children should bear, and the debt they and their child may accrue while in college." Despite more families saving, just 27% are on track to meet their savings goals by the time their child reaches college age, according to Fidelity.
US GDP outpaced expectations (Business Insider)
The US economy grew at an annualized rate of 3.9% in the second quarter, outpacing the 3.7% growth that economists were expecting. According to the Bureau of Economic Analysis, consumer spending on healthcare, food services and accommodation propelled second quarter growth. Notable was the upward revision to consumption, which was raised to up 3.6% from up 3.1%.
Janet Yellen suggests the Fed could still raise rates in 2015 (Business Insider)
Thursday evening, Federal Reserve chair Janet Yellen delivered a speech titled "Inflation Dynamics and Monetary Policy." During her long-winded speech on the history of US inflation, Yellen noted, "Most FOMC [Federal Open Market Committee] participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter." The Fed has two more meetings this year, coming on October 28 and December 16. The market is suggesting a 18% probability of an October hike and a 44.2% probability of a December lift-off.
LPL Financial agrees to pay fine over non-traded REIT sales (Financial Advisor)
Financial Advisor reports, LPL Financial will pay $1.4 million to settle cases brought by state regulators regarding its sale of non-traded REITS. The settlement includes all states except for Massachusetts and New Hampshire. Massachusetts settled its case for $2 million in 2013 and New Hampshire's case is still pending, according to Financial Advisor. Additionally, LPL has agreed to pay $1.8 million to settle a leveraged ETF case filed by Delaware's Department of Justice and Massachusetts' attorney general.
Inheritance doesn't have a big impact on retirement(Center for Retirement Research)
Inheritance doesn't have as big of an impact on being able to retire as one might think. At least that is the conclusion of The Center for Retirement Research at Boston College, which says its National Retirement Index would fall by less than one percentage point if you took away inheritances from every household that has one. Additionally, the CRR found inheritances could become more common in the future as a result of unspent 401(k) plans.