Business Up Front - April 2004

Business Up Front

Baby Boomers Growing Up at Last?

In the past 10 years, as affluent baby boomers have come closer to retirement age, they have begun to think more about their financial futures, according to a national study commissioned by AXA Financial, Inc. In 2003, 43 percent of boomers cited having adequate resources in retirement as their greatest economic concern, up from 26 percent in 1993.  

Compared to 10 years ago, affluent baby boomers today expect to assign a higher priority to providing a financial base for retirement (55 percent, up from 43 percent), maintaining or upgrading their home (26 percent, up from 14 percent) and providing for parents or in-laws (19 percent, up from 9 percent).

Baby boomers who are saving money are setting aside a higher percentage of their salary (12 percent, up from 10 percent) or a larger dollar amount ($10,000, up from $7,843) than they did 10 years ago. Further, baby boomers show signs of becoming more financially sophisticated. They now place more importance on IRAs and less importance on CDs and money market accounts than they did 10 years ago. Use of IRAs has increased dramatically, with four in 10 baby boomers calling it a primary investment.

Construction Employers Foresee Marginal Pay Raises

According to interviews with 85 construction executives and 78 employers, the average raise in executive pay in the construction industry was only 3 percent in 2003. The survey was conducted by consultants with Construction Executive, LLC. Although the end of 2003 and early 2004 show signs of economic promise, the firm predicted that until construction firms get their costs in line and produce much-improved earnings, employers are likely to remain conservative with any pay increases. Less than one-third of the employers polled said they planned to increase incentive payouts this year compared with last. Most of the other employers forecasted unchanged bonuses. Eight percent of employers planned no pay increases for some employees in 2004. However, 13 percent of employers stated they plan to increase their workforces at the executive level in 2004.

Thoughts for April 15th

Should you be totally honest in filling out your income tax forms? Most people think so, although public support for cheating "a little" is up, according to a survey conducted by RoperASW for the IRS Oversight Board. Other survey results:

How much, if any, do you think is an acceptable amount to cheat on your income taxes?

How much influence does each of the following factors have on whether you report and pay your taxes honestly?

How important is it to you that the IRS ensures the following taxpayers honestly pay what they owe?