MONEY

24 Things to Do With $10,000 Now

$10,000 bundle
Grafissimo—Getty Images

Got 10Gs burning a hole in your bank account or withering away in your 401(k)? Here's how to deploy that money wisely.

1. Stash your cash in a CD. Really.
Believe it or not, putting a portion of your emergency fund into a CD looks like a decent idea. Synchrony (née GE Capital Retail) Bank offers 1.05% for a 12-month CD of $10,000. Meanwhile, a one-year Treasury yields 0.11%. And Vanguard’s Short-Term Investment Grade bond fund returned 2.6% over the past year, which is not a lot of compensation for the greater risk.

2. Write the book that will launch your career
Julia Child’s first cookbook helped turn her into a star. Follow her recipe, but get to the table faster by self-publishing. You can hire an editor, designer, and formatting expert for some $6,000 via BiblioCrunch.com; use the rest of the $10K to pay a publicist.

3. Create a D.I.Y. home theater
The average home theater costs $26,000. But Dave Pedigo of the Custom Electronic Design & Installation Association helped MONEY put together this one for under 10 grand, with wiggle room for extras like 3-D glasses, movies, and a gaming console.

Seats: Novo Home Viewpoint (around $1,400)
Screen: LG’s 55-inch LED TV ($3,300) or Stewart Filmscreen ($1,200 to $1,500) plus Epson 5030UB projector ($2,499).
Sound system: Sonos Playbar ($699) plus Sub subwoofer ($699) and a pair of Play:1 speakers ($199 each)
Concessions: Nostalgia Electrics vintage popcorn maker ($370) and Avanti’s 3.1-cubic-foot stainless- steel beverage cooler (around $230).

4. Go to the jungle
Traveling with four or more gets expensive fast. But a trip to Ecuador can help you stretch your budget. Since the opening of a new international airport in Quito, airlines have instated new routes to the city and are offering roundtrip flights from the East Coast for as low as $400, says Smartertravel.com’s Anne ­Banas. G Adventures was recently advertis­ing a nine-day tour of the country, including a visit to the Amazon jungle and hot springs, for $1,599 a person, down from the usual $1,999.

5. Give like Gates
Create your own mini version of the Bill & Melinda Gates Foundation—without administrative hassles or billions of bucks—by opening a donor-advised fund. Fidelity lets you start one with as little as $5,000. You don’t have to decide which charity gets the money right away, “so you can be more intentioned about the giving,” says Burlingame, Calif., wealth adviser Sean Stannard-Stockton. But you get to write off up to 50% of your income this year—which is especially valuable when you’re at your peak earnings.

6-8. Snap up an income property
In some locales, a $10,000 down payment gets you a three-bedroom home that will rent for twice your mortgage payment. “For a strong pool of renters, jump into a market with a big student population,” says Daren Blomquist of RealtyTrac. Here are three:

Income property

 

9-10. Put Paul Bunyan in your portfolio
A tighter labor market may ramp up wages and lead to higher prices. Stocks can help you hedge, but for an unexpected support, try trees. Timber is a commodity, so it rises with inflation. Also, it’s used to make houses, and housing prices rise when investors seek shelter in hard assets. Global investment firm GMO predicts that timber will be the best-performing asset class over the next seven years, with gains of 5.4% annually after inflation, vs. 2.1% for high-quality stocks and 0.5% for U.S. bonds. Get your lumber through the Guggenheim Timber ETF CLAYMORE ETF TST 2 GUGGENHEIM TIMBER ETF CUT 0.2033% and ­iShares Global Timber and Forestry ISHARES TRUST GLOBAL TIMBER & FORESTRY ET WOOD 0.2516% .

11. Lock in a great deal on a ski vacation
Ski resorts are eager to get people to book early, before there’s a sense of what kind of winter it will be, says Leigh Crandall, managing editor of Jetsetter.com. For example, Ski Holidays Canada recently offered a 10-day 2015 hotel and ski package in Banff, Alberta, for $4,000 for a family of four, about 40% off the regular rate. Flights to the Calgary airport from the East Coast start at $500 a person in January.

12-14. Get your house ready to sell
If you want to sell next spring, focus on amping up curb appeal, starting now. For $10,000, you could revamp the plantings. Replace what’s along the foundation with a mix of evergreen shrubs of different textures ($2,000 to $4,000), add beds of colorful perennials with different bloom times ($500 and up) and put ornamental trees at the house’s corners ($500 to $1,500 each). Or paint the exterior, which can help your house sell faster, which usually means a better price, says Pasadena architect and realtor Curt Schultz. Or add, upgrade, or replace a deck or patio—since buyers “like to be able to step right outside onto an outdoor room that feels like part of the house,” says Schultz. You might be able to get a 20-by-40 deck, a 20-by-20 deck with a barbecue or a fire pit built in, or a 10-by-10 patio with a roof for 10Gs.

15. Give your investments a boost
Research has demonstrated that certain stocks—those that regularly grow divi­dends, have stable prices, are undervalued compared with fundamentals, or have re­cent­ly appreciated—tend to outperform. Split your $10,000 among these characteristics as follows:

16. See Europe by boat
The market for travelers who want to explore the continent by boat is growing exponentially, says Colleen McDaniel of CruiseCritic.com, but the launch of two dozen new ships last year has created competition to fill cabins. Recently you could get a seven-night late-fall cruise on the Danube for about $1,500 a ­person (a savings of $1,360). Nonstop flights from the eastern U.S. start at around $1,200. So a little over $10,000 would have a family of four out on the river in style.

17-19. Buy a great used car
Check out these three picks for $10,000 from Patrick Olsen of Cars.com:

  • 2008 Ford Fusion: The roomy Fusion— which is “great for a small ­family running errands around town,” according to ­Olsen—has a V-6 engine and gets about 23 miles per gallon.
  • 2008 Kia Sportage: While no-frills, the Sportage is one of the few quality SUVs at this price point. “It’s good for small-business owners and parents whose kids play sports,” Olsen says.
  • 2007 Toyota Prius: This second-genera­tion Prius “is good for those who have a long commute,” says Olsen. “You’ll save a lot of money on gas.” It gets 46 mpg.

20. Practice living in your retirement town
To determine whether a place is really a good fit for you, you need to visit different times of the year and stay for longer periods, suggests Miami financial planner Ellen Siegel. Allocate $10,000 to travel and costs to stay for, say, a month in the summer and a week in the winter. Rent a condo or house in a neighborhood where you want to live and get to know area residents to make the simulation more real.

21. Make yours a chef’s kitchen

Many homebuyers love the industrial looks of pro-style appliances, but a Wolf range can ring in at $10,000 and a Sub-Zero fridge might cost $16,000. And if you invest in one or two high end appliances, but stick with economy versions for the rest, buyers will likely penalize you for that old dishwasher more than they reward you for the gleaming “prosumer” cooktop, real estate agents say. “Still, you don’t need to invest that much to get the professional look in the kitchen,” says Mechanicsburg, Pa., kitchen designer John Petrie, who’s president of the National Kitchen and Bath Association. “Moderately priced brands like Jenn-Air, Kitchen Aid, and Whirlpool have jumped on the commercial trend.” So, you can now outfit the entire kitchen—and cook like a semi-pro—for under $10,000.

22. Chase a market sector before it’s over

Since we’re late in the sixth year of the bull market, many analysts think it’s nearing the end. Certain sectors perform well in the last year of a bull run, including energy (34% average returns in last year of bull), health care (27%) and tech (23%), according to research by Ned Davis. Both energy and technology companies have a lower forward p/e than the S&P 500, and are expected to outgrow the market over the next five years. Meanwhile, “the outlook for the health care sector is promising,” says Eddie Yoon, a portfolio manager and research analyst for Fidelity Investments, “based on factors including an aging global population, an expanding middle class in many emerging markets, and a strong product innovation style.” Look to Money 50 funds Sound Shore SOUND SHORE FUND I COM USD0.01 SSHFX 0.4165% , which allocates almost half of its holdings to energy, technology and health care, and Primecap Odyssey Growth PRIMECAP ODYSSEY F TRUST UNIT POGRX 0.7767% , which has two-thirds of its holdings in health care and technology companies.

23. Invest in the frontier
BRICS is so 2012. With emerging markets countries (recent case in point: Russia) struggling to sustain economic growth, it may be time to look toward faster growing smaller countries (like Ghana and Vietnam). These “frontier” nations have been expanding fast: iShares Frontier 100 ISHARES INC MSCI FRONTIER 100 ETF FM 0.5007% is up 15% this year, but is still less expensive than the S&P 500. (The MSCI Frontier Index forward p/e is 13.6). Moreover, an index of frontier funds has actually been less volatile over the past 15 years than its emerging markets counterpart, says Morninstar’s Patricia Oey.

24. Sprechen Deutsche
If you work for a firm that does business internationally, becoming fluent in another language may pay off. A second language is correlated to an average 2% to 3% increase in annual income, according to research from Wharton and LECG Europe. Chinese provides the highest return. But if you don’t have it in you to learn an entirely new alphabet—and your company is trying to land clients in Deutschland—try learning German, which is correlated to 4% higher pay. One way to get up to speed: A language vacation. LanguagesAbroad.com offers language immersion programs for travelers in 35 countries. An intensive two-week course with 20 group lessons and 10 private lessons in Berlin is $2200, not including airfare or accommodations. On a $100,000 current salary, it would only take you three years to recoup a $10,000 investment.

Related: 35 Smart Things to Do with $1,000 Now
Tell Us: What Would You Do With $1,000?

 

MONEY Sports

How College Football Sacked the NBA and MLB

Houston football fans singing the National Anthem
Dave Einsel—AP

With the college football season upon us, it's time to take stock of just how valuable this "amateur" sport has become.

Want to know how rabid fans have become for college football?

Well, the season kicks off in earnest tonight when the South Carolina Gamecocks (ranked 9th in the country) take on the Texas A&M Aggies (ranked 21st).

The game will be played in Columbia, South Carolina, in front of 80,000 screaming fans — an amazing feat given that Columbia has a population of just 133,000. The Aggies, for their part, play in Kyle Field, which in 2015 will be able to hold almost every single College Station, Texas, resident.

Last year, the Gamecocks opened with a game against the University of North Carolina, and 3.7 million people across the country tuned in. That may not sound that impressive, but consider that Columbia is just the 77th largest television market in the U.S., behind cities like Omaha and Toledo.

There’s no doubt about it. Americans love football.

More people watched the NFL Sunday Night pregame show last year than watched the Boston Red Sox win the World Series. In fact, professional football games comprised all but four of the 50 most-watched sporting events of 2013. The National Football League is the most popular spectator sport in America.

What’s No. 2? Not the NBA, not Major League Baseball—but college football. And with college football introducing a new-fangled playoff system this year, expect America’s infatuation to only grow.

Here are a few measures of its influence.

Ratings

The 2013 NBA finals featured perhaps the most popular athlete in the world, Lebron James, as his super team battled against the San Antonio Spurs for seven unforgettable games. An average of almost 18 million viewers saw James secure his second NBA title. A few months later, 15 million baseball fans saw the Red Sox win their third championship since 2004.

How many viewers watched Florida State beat Auburn in the 2014 BCS title game? Twenty-six million, per Nielsen ratings.

This isn’t a one-off event. On average, 2.6 million people watched NCAA regular season football games last year, according to Nielsen. Take Saturday, October 5, 2013. Both the University of Georgia and Tennessee were enduring less than stellar seasons. Nevertheless, 5.6 million people tuned in to see the two Southeastern Conference schools play each another on CBS.

Viewer demand is only likely to increase. Starting this year, college football will institute a four-team playoff to decide the national champion, and rejiggered rules allow the biggest football programs more control over their finances. According to USA Today, these developments will lead to the biggest schools earning 71.5% of the $470 million annual television revenue for the playoff.

Baseball and basketball simply don’t attract as many eyeballs. About 700,000 people watched an MLB regular season game on television in 2013, and 1.4 million watched a non-playoff NBA game in the 2012-13 season. (All are based on nationally televised games.)

The total attendance for 835 NCAA Division I football games was a little more than 38 million, with a per-game attendance of 46,000. The NBA, which has almost 400 more total games in its season, drew 21 million people, while the MLB attracted 30,500 per game. (Major League Baseball has almost three times as many games and brought in a total of 74 million fans.)

Reach

Part of college football’s popularity might be its reach. While the NBA and MLB have 30 teams collected mostly around large metropolitan areas, college football programs exist where there are colleges – which is everywhere. Consider that New York, Chicago, Los Angeles and San Francisco have 15 professional baseball and basketball teams. That’s a quarter of all the teams in only four cities.

Now look at NCAA football. The top five teams play in Tallahassee, Tuscaloosa, Eugene, Norman, and Columbus. While it’s true that a number of the West Coast schools play in big cities (UCLA, Stanford, and the University of Washington), most of the big-time schools are the only game in town. If you live in Boise, Idaho, do you really care about anything else the way you care about Boise State Broncos football?

Riches

There is something a bit unsettling about college football’s popularity, and corresponding affluence. A college football coach is the highest paid public employee in 27 states – including South Carolina and Texas. Alabama’s Nick Saban made more than $5.5 million last year, despite the fact that his and every other team’s players weren’t paid anything. (Many were given athletic scholarships, but those can be taken away if a “student-athlete” becomes injured. Just for some perspective: the University of Texas’s football program earned $82 million in profit last year.)

Plus, football is a dangerous game, and it’s an open question whether an institution of higher learning should even be in the business of promoting a sport that causes severe head trauma. (Google: Owen Thomas.)

College football, though, is inexorably linked to American history. The first intercollegiate game took place four years after the end of the Civil War, and the college game itself was saved by then President Teddy Roosevelt.

Otherwise normal, hard-working Americans revert to 20-year-old fanatics every fall Saturday afternoon and cheer on their alma maters. Tonight’s game in Columbia is just another page in the never-ending story of America’s love with her second-favorite sport.

MONEY Investing

13 Things to Do with $100,000 Now

domino stacks of $10,000 bills
Ralf Hettler—Getty Images

Oh, if only six figures landed in your lap tomorrow. Hey, you never know. In case it does—or in case you're lucky enough to have 100 grand put away already—you'll want to have these smart moves in your back pocket.

1. Say “yes” to a master
Unless you live in one of the few areas where the real estate market hasn’t come to life, the decision of whether to move or improve is likely tipped in favor of remodeling, says Omaha appraiser John Bredemeyer. A new bedroom, bath, and walk-in closet may cost you $40,000 to $100,000. But it’s unlikely you’d find a bigger move-in-ready abode with every­thing you want for only that much more, especially after the 6% you’d pay a Realtor to sell your current home.

2. Burn the mortgage
If you’re within 10 years of retiring, paying off your house can be a wise move, says T. Rowe Price financial planner Stuart Ritter. You’ll save a lot of interest—$24,000, if you have a $100,000 mortgage with 10 years left at 4.5%. Eliminating the monthly payment reduces the income you’ll need in retirement. And as long as you’re not robbing a retirement account, erasing a 4.5% debt offers a better return than CDs or high-quality bonds, says Ritter.

3-5. Buy a business in a box
One hundred grand won’t get you a McDonald’s (for that you’ll need 10 or 15 friends to match your investment)—but there are a number of other good franchises you can buy around that price, says Eric Stites, CEO of Franchise Business Review. Here are three that get top raves in his company’s survey of owners:

  1. Qualicare Family Homecare (a homecare services firm)
  2. Window Genie (a window and gutter cleaning service)
  3. Our Town America (a direct mail marketing service)

6. Tack another degree on the wall
On average, someone with a bachelor’s degree earns $2.3 million over a lifetime, vs. $2.7 million for a master’s and $3.6 million for a professional degree. The payoff varies by field: In biology a master’s earns you 100% more, vs. 23% in art. So before applying, find out how much more you could earn a year, research tuition, and determine how long it’ll take you to recoup the investment.

7. Make sure you won’t be broke in retirement
More than half of Americans worry about running out of money in retirement, Bank of America Merrill Edge found. Allay your fears with a deferred-income annuity: You pay a lump sum to an insurance company in exchange for guaranteed monthly payments starting late into retirement. Because some buyers will die before payments start, you get more income than with an immediate annuity, which starts paying right away. A 65-year-old woman who puts $100,000 into an annuity that kicks in at age 85 will get $3,500 a month, vs. $600 for one that starts this year. In the future you could see deferred annuities as an investment option in your retirement plan; the Treasury Department just approved them for 401(k)s.

8. Get a power car that runs on 240v
For just over $100,000 (after a $7,500 tax rebate), you can be the proud owner of an all-electric Tesla Model S P85, with air suspension, tech, and performance extras. Yes, that’s a pretty penny. But you’ll help the planet, eliminate some $4,000 a year in gas bills—and get a ride that gets raves. “The thing has fantastic performance,” says Bill Visnic of Edmunds.com. It goes from 0 to 60 in 4.2 seconds and drives 265 miles on a charge, which requires only a 240-volt outlet.

9-12. Put hotel bills in your past
Think you missed the window on a vacation-home deal? True, the median price has jumped 39% since 2011, according to the National Association of Realtors. “But while you can’t buy just anything, anywhere, for 100 grand anymore, there are still decent deals out there in appealing ­places,” says Michael Corbett of Trulia.com. Here are four markets where the price of a two-bedroom condo goes for around that amount:

  • Sunset Beach, N.C./$96,000
  • Fort Lauderdale/$116,000
  • Colorado Springs/$117,000
  • Reno/$117,000

13. Tone up your core
The average American saving in a 401(k) has nearly $100,000 put away ($88,600, to be exact, according to Fidelity). With this core money, you’re likely to do better with index funds vs. active funds, says Colorado Springs financial planner Allan Roth. “The stock market is 90% professionally advised or managed, and outside Lake Wobegon, 90% can’t be better than average.” His three-fund portfolio: Vanguard’s Total Stock Market Index, Total International Stock Index, and Total Bond Market.

Related: 35 Smart Things to Do With $1,000

Related: 24 Things to Do with $10,000

Tell Us: What Would You Do With $1,000?

MONEY First-Time Dad

Why You Should Bring Your Baby to a Bar

Luke Tepper

And other tips for new parents who are eager to re-enter the adult world.

My wife and I had returned from the hospital 10 days earlier with our new son, Luke, in tow. While every moment of parenting a newborn combines equal parts fear for his safety and surpassing love, those first couple of weeks test your capacity as a human being.

There are bound to be growing pains when you incorporate a helpless thing into an ecosystem calibrated to childless adult behavior. Despite the hours we spent decorating his room, organizing his dresser, positioning his changing table, and the like, caring for our new son overwhelmed us.

So we hunkered down. Our two-bedroom Brooklyn apartment became a green zone in an otherwise hostile terrain. Except for quick trips to the neighborhood doctor, Luke did not leave his new home those first 10 days. We escaped only for the occasional quick jaunt to the grocery store.

Since everything is so new when you have a baby, you instinctively try to pare down your world to give yourself a sense of control. You don’t want outside influences to make an impression on your child until you’ve had the chance to know him first. You’re scared that the second you introduce something new, the whole façade will crumble.

After 10 days burrowed on the 8th floor, we felt he (and we) were ready. Perhaps Mrs. Tepper and I were just tired of being confined. Either way, we layered jackets, hats, and blankets over Luke and went to the park. My wife fed him and I held him and we returned home proud of our achievement.

Fast-forward six months and all that’s changed. Luke has transformed from a delicate six-pound newborn into a crawling, climbing, rolling, hair-pulling maniac. He used to sleep soundly in my forearm. Now he wants to bite my arm and clasp onto my lower jaw with his indomitable grip. Agoraphobia is no longer an option.

Plus, receiving approbation from friends and onlookers on your baby’s cute outfits compensates for sleepless nights.

So, where does one take a baby? Of course parks, sing-a-longs, and grandma’s house are all viable options—Luke loves pulling up grass by the root. They can also become stale. We are both more than a year from entering our thirties and would like to have a taste of our pre-baby lives.

After six months of careful research and experimentation, I have discovered three ironclad rules for new parents when it comes to bringing children into the world.

#1: Bars Are Better Than Restaurants

Restaurant patrons often forget that they themselves were once babies. Despite their infant origins, your fellow diners will not display patience and bonhomie if your toddler cries. They will instead sneer and glare and otherwise signal passive-aggressive frustration.

And really, you won’t have fun either. Restaurants are expensive and best enjoyed leisurely. There’s nothing leisurely about eating with a baby. You’ll order fast, eat faster, and hope to escape the trattoria before an episode unfolds.

You are better off eating at home and then going out for a pint or two. Bars are louder than restaurants, and the ambient noise will muffle your baby’s sobs. Also, beer is less expensive than dinner, which means you’ll minimize your sunk costs if you have to leave in a hurry.

#2: Show Up Early

If friends invite the whole family over for dinner, arrive as close to the proposed time as possible. People without children have the luxury to treat their time casually. Those with children should know better. A baby’s placid demeanor has a short shelf life, and if you want to maximize your time amongst adults, you’d better take advantage of it.

We recently brought Luke to a lunch our friends were hosting. They told us to arrive around 2 p.m., so we did. Four hours later, when it was time to return home and put Luke to bed, we reflected on a rather full afternoon of fun.

#3: The More the Merrier

Barbecues are heaven—especially ones full of friends and family. You may tire quickly of Uncle Joe’s jokes, or struggle to swallow your pal’s new berry-infused home-brewed beer, but you’ll love it when they snatch your little tyke from your enervated hands and (temporarily) release you from the yoke of parenting.

For 20, even 30, minutes at a time you’ll be able to enjoy your hamburger in peace. Whenever someone new comes by and requests to hold the baby, be magnanimous. Your car ride back to the land of “No Time or Will to Do Anything” is closer than you realize.

Taylor Tepper is a reporter at Money. His column on being a new dad, a millennial, and (pretty) broke appears weekly. More First-Time Dad:

 

MONEY Investing

35 Smart Things to Do With $1,000 Now

Andrew B. Myers

These moves can make you smarter, healthier, happier—and richer.

1. Buy 1 share of Priceline Group THE PRICELINE GROUP INC. PCLN -0.5117%
The fast-growing travel biz has just 4% global market share, leaving plenty of room to expand.

2. Buy 10 shares of Apple APPLE INC. AAPL 0.2445%
The Mac daddy has a dividend yield of 1.9% and a cheap price/earnings ratio of 14.1.

3. Buy 50 shares of Ford FORD MOTOR CO. F -0.0574%
The automaker has a P/E of 10.5, a 2.8% dividend yield, and a record (5%) market share in China.

4. Grab the last of the great TVs
While they’re considered superior to LCDs—for having deeper blacks and any-angle viewing—plasma TVs haven’t been profitable enough for manufacturers, so most are curbing production. LG is one of the last in the game, and its ­60-inch 60PB6900 smart TV (around $1,000) has apps to stream digital content and 3-D performance besting its peers. Get the extended warranty, since a service company would have to replace the TV if parts are no longer available.

5. Kick tension to the curb with yoga…
Half of workers say they’re less productive due to stress, the American Psychological Association found; worse, research from the nonprofit Health Enhancement Research Organization found that health care expenses are 46% higher for stressed-out employees. Regularly practicing yoga can help modulate stress responses, according to a report from Harvard Medical School. Classes cost about $15 to $20 a pop, which means that $1,000 will keep you doing downward dog twice a week for about half a year.

6. …Or acupuncture
A recent article in the Journal of Endocrinology found a connection between acupuncture and stress relief. Your insurer may cover treatment, but if not, sessions run $60 to $120 a piece. So you can treat yourself to around 10 to 15 with $1,000.

7. …Or biking
Research suggests that 30 minutes a day of moderate exercise can lower levels of the stress hormone cortisol. So take a bike ride after work. The ­Giant Defy 2 ($1,075) is one of the best-value performance bikes out there, Ben Delaney of BikeRadar.com says.

8. Give your kids ­a jump on retirement
Assuming your kids earn at least a grand this year from a summer job or other employment, you can teach them the importance of saving for retirement by depositing $1,000 (or, if they earn more and you’re able, up to $5,500) into Roth IRAs in their names. Do so when the child is 17, and it’ll grow to over $18,400 by the time he’s 67 with a hypothetical 6% annual return, says Eau Claire, Wis., financial planner Kevin McKinley.

9. Get over your midlife crisis
Would getting behind the wheel of your dream vehicle make you feel a teensy bit better about reporting to a 30-year-old boss? Then sow your oats—for 24 hours. Both Hertz and Enterprise offer luxury rentals; you can find local outfits by searching for “exotic car rental” and your city. Gotham Dream Cars’ Boston-area location rents an Aston Martin Vantage Roadster for $895 a day.

 

Andrew B. Myers

10. Iron out your wrinkles
For a safer and cheaper alternative to going under the knife, try an injectable dermal filler. Dr. Michael Edwards, president of the American Society for Aesthetic Plastic Surgery, recommends Juvéderm Voluma XC, which consists of natural hyalu­ronic acid that helps smooth out deep lines and adds volume to cheeks and the jaw area. It lasts up to two years and costs near $1,000 per injection.

11. Live out a dream
Play in a fantasy world with these adult camps, which cost in the neighborhood of $1,000 with airfare: the four-day Adult Space Academy in Huntsville, Ala. ($650); the Culinary Institute of America’s two-day Wine Lovers Boot Camp in St. Helena, Calif. ($895); or the one-day World Poker Tournament camp in Vegas ($895).

12. Hire someone to fight with your folks
Is your parents’ home bursting at the seams with decades of clutter … er, memories? Save your breath—and sanity—by hiring a profes­sional organizer (find one at napo.net) for them. Mom and Dad may listen more to an impartial party when it comes to deciding what to toss, says Austin organizer Yvette Clay. Focus on pile-up zones, like the basement, garage, and living room (together, $500 to $1,500).

13. Launch you.com
A professional website will help you stand out to employers, says Jodi Glickman, author of Great on the Job. Buy the URL of your name for about $20 a year from GoDaddy and find a designer via Elance​.com or Guru.com; $1,000 should get you a nice-looking site with a bio, blog, photos, and portfolio of your work.

14. Become a techie—or just learn to talk to one
Technical knowledge isn’t just for IT folks anymore. “Digital literacy is becoming a required skill,” says Paul McDonald, a senior executive director of staffing agency Robert Half International. Get up to speed with one of these strategies. Understanding how websites, videogames, and apps are built is useful to almost any job dealing in big data or search algorithms, says McDonald. Take a course in programming for nonprogrammers at ­generalassemb.ly ($550), then get a year’s subscription to Lynda.com ($375) for more advanced online tutorials.

15. Get tweet smarts
Take a class to give you expertise—and confidence— in using social media and analyzing metrics. MediaBistro’s social media boot camp includes five live webcast sessions for $511, and you can add four weeks of classroom workshops with pros for $449. #olddognewtricks

16. Buy the Silicon Valley gear
Need a new laptop now that you’re a tech whiz? To best play the part, go with Apple’s MacBook Air ($999) or its big brother the MacBook Pro ($1,099). With a long battery life and powerful processors, the Air and Pro are the preferred picks for developers, coders, and designers, says PCmag.com’s Brian Westover.

David Kilpatrick—Alamy

17. Save your cellphone camera for selfies
Your most important memories shouldn’t be grainy. Get a digital SLR camera featuring a through-the-lens optical viewfinder, “which is still essential for shooting action,” says Lori Grunin of CNET. Her pick, Nikon’s D5300 ($1,050). Its 18–140mm lens produces sharp images shot quickly enough for most personal photography.

18. Class up your castle
Interior decorating can cost a fortune—insanely priced furnishings, plus a 30% commission. Homepolish.com, launched in 2012 and now in eight metro areas, upends the model. The site’s decorators charge hourly ($130 or less) and suggest affordable furnishings.

19-21. Hire a good manager
With only 10 C-notes, your mutual fund choices are limited by minimum investment requirements. Besides simply letting you in the door, these actively managed funds have relatively low fees and beat more than half their peers over three, five, and 10 years:
Oakmark Select large blend; 1.01% expenses
Schwab Dividend Equity large value, 0.89% expenses
Nicholas large growth, 0.73% expenses

22. Primp the powder room
Get a new sink and vanity for a refresh of your guest bathroom without a reno. You can find a combined vanity and sink set for under $650; figure another $100 to $200 each for faucet and labor.

23. Replace light fixtures
Subbing in new lighting in the dining room, the front hall, and possibly the kitchen can take 20 years off your house, suggests Pasadena realtor Curt Schultz. You’re likely to pay $100 to $400 per fixture, plus $50 to $100 for installation.

24. Swap out the front door
It’s the first impression guests and buyers have of your home. Look for a factory-finished door—possibly fiberglass if it’s a sunny southern or western ­exposure without an overhang. You could pay $1,000 for the door and the installation.

25. Catch up on retirement.
If you’re 50 or older, you can put in $1,000 more in an IRA (above the $5,500 normal limit) each year. Do so from 50 to 65, and you’ll have $27,000 more in retirement assuming you get a 6% annual return, per T. Rowe Price.

Ingolfur Bjargmundsson—Getty

26. Fly solo to see the Northern Lights
As more companies package deals to Iceland, prices are dropping, says Christie McConnell of Travelzoo.com. You could recently find four-night packages with airfare, hotel, and tours for $800 a person. Go in late fall to see the Northern Lights.

27. Hit the beach in Hawaii
The islands are still working through the overbuilding of hotels that began before the recession, says Anne Banas of Smartertravel.com. Three-night packages for fall with hotel and airfare start around $500 a person from the West Coast.

28. Give your car a makeover
You can’t get a new set of wheels for 1,000 smackers, but you can make your old car feel new(ish) again with this slew of maintenance fixes: A new set of tires ($600), a full car detail ($100), new wiper blades ($50), a wheel alignment ($150), and a synthetic oil change ($100). You’ve likely been putting these off until something breaks, but there’s good reason to do them all at once. Besides giving your car a smoother ride, “this preventative maintenance will help you nurse your car longer, while also saving some gas,” says Bill Visnic, senior editor at Edmunds.com. New car smell not included.

29. Make like (early) Gordon Gekko
Wall Street buyout firms KKR and Carlyle are inviting Main Street investors into private equity funds for $10,000 and $50,000, respectively. Want to play the game with less scratch? Invest $1,000 in Blackstone GroupBLACKSTONE GROUP LP, THE BX 0.5699% . Shares of the private equity giant have a 5.1% yield and a cheap P/E of 8.5, plus Blackstone is a top-notch alternative-asset firm, says Morningstar’s Stephen Ellis.

30-32. Put your donations to work where they’ll do the most good
Groups that focus on improving healthcare in the developing world have some of the best measurable outcomes of all charities, says Charlie Bresler, CEO of The Life You Can Save. Many of the supplies used to improve and save lives, like vaccines or mosquito nets, cost pennies to produce, he says, and surgeries that cost tens of thousands in the U.S. can be performed for a few hundred bucks overseas. Three great organizations working in those areas: SEVA Foundation, which works to prevent blindness; Deworm the World, which seeks to eradicate worms and other parasitic bacterial disease; Fistula foundation, which provides surgical services to women with childbirth injuries.

33. Defend the fort
An alarm system can pare as much as 20% from a homeowner’s policy, and the latest ones have neat bells and whistles. Honeywell’s LYNX Touch 7000 (starting at $500, plus $25 to $60 a month) links to four cameras that stream live video. It randomly switches on lights to make an empty home look occupied—and can detect a flood and shut down water.

34. Enjoy a buffet of entertainment
The average cable bill is expected to hit $123 a month in 2015—or $1476 a year—according to the NPD group. What if we told you you could cut the cord, redeploy $1,000 of that to getting two years worth of the following digital libraries, and still bank about 500 bucks? Yeah, we thought so.
For old movies and TV shows…get Netflix ($7.99-$8.99/month). Analysts estimate the company’s library is much larger than that of Amazon Prime.
For current TV shows…watch via Hulu ($7.99/month), which offers episodes from more than 600 shows that are currently on air.
For music…stream with Spotify Premium ($9.99/month). The premium version lets you skip commercials and listen to millions of songs even offline.
For books…read via Kindle Unlimited ($9.99/month). You can access the company’s library of more than 600,000 ebooks and audiobooks with one of its free reading apps, which work Apple, Android or Windows Phone devices.

35. Protect your heirs.
For about $1,000 you can have a will, durable power of attorney, and health care directive written up. Find an estate planner at naepc.org.

Related: 24 Things to Do With $10,000 Now
Tell Us: What Would You Do With $1,000?

MONEY Behavioral Economics

Why You Shouldn’t Overplay a Hot Hand — in Basketball or Investing

Miami Heat's LeBron James
© Mike Stone—Reuters

New research says there is such a thing as a hot hand in basketball — like momentum in investing. Trouble is, hot hands lead to overconfidence, which leads to cold spells.

A couple of winters ago, Larry Summers gave a 30-minute talk to the Harvard’s men’s basketball team over pizza. During the peroration, per Adam Davidson in the New York Times, the former Treasury Secretary and Harvard president engaged in a bit of Socratic dialogue.

He asked the students if they thought a player could have a “hot hand” and go on a streak in which he made shot after shot after shot? All the players nodded uniformly. Summers paused, relishing the moment.

“The answer is no,” he said. “People apply patterns to random data.”

In this case, Summers may be wrong.

A new study by three Harvard grads — using data based on tracking cameras in 15 arenas that captured 83,000 shot attempts in the 2012-13 NBA season — found that “players who are outperforming (i.e. are ‘hot’) are more likely to make their next shot if we control for the difficulty of that shot.”

When you account for the difficulty of the shot, the authors discovered “a small yet significant hot hand effect.” To put a number on it, a player’s chance of making his next shot increases by 1.2% for each prior shot he made.

So what?

While your basketball skills may never carry you to the NBA, there is a lesson to be learned from the paper’s findings.

And it has to do with how you invest.

The study’s authors concluded the following: “Players who perceive themselves to be hot based on previous shot outcomes shoot from significantly further away, face tighter defense, are more likely to take their team’s subsequent shot, and take more difficult shots.”

This basically means when someone makes certain shots (think three-pointers) at a higher percentage than they normally do, the opposing defense reacts by guarding the player more closely. And as defenders start paying more attention to the shooter, he has to take shots from longer range, which are inherently more difficult.

What does this have to do with your portfolio?

Well, consider what’s going on. A player makes a few shots and gets “hot.” He’s in the zone, so he starts growing overconfident. Not only does he start to take more shots, but he starts taking increasingly difficult shots.

While he may be more likely to make those difficult shots at the outset since he’s on a roll, the more difficult shots come with a lower percentage of accuracy. Which means he will eventually start to miss more and cool down. In other words, his overconfidence leads him to take shots that eventually take him “out of the zone.”

This is a lot like momentum investing.

Momentum is a real force in the markets. History, for instance, shows that investors — at least in the short run — are much better off riding last year’s winners than the laggards, says Sam Stovall, managing director for U.S. equity strategy at S&P Capital IQ.

So investors who ride the market’s momentum invest in a winning stock or sector. Those investments rise in value. This trend repeats a few times and before long investors believe their skills as a trader are leading to the gains, rather than the momentum effect. Before long, these investors are trading more frequently to capitalize on their “hot hands.” But this has the effect of racking up trading costs and mistakes, which are a headwind to investors that eventually cools them down.

This doesn’t mean you should eschew momentum altogether. As MONEY’s Paul Lim noted in his March 2014 article, “A decent body of research suggests that entire asset classes that shine in one year have a better-than-average chance of outperforming in the next.”

The trick is to find a way to ride the hot hand without taking increasingly inefficient shots.

One idea is to minimize your trading costs by limiting your trading to just once a year. According to researchers at the asset-management firm Leuthold Group, a time-tested way to do this is to buy last year’s second-best performing asset class and hold that for a year (last year’s second-best asset class was large, U.S. stocks). Then repeat the process the following year. Historically, such a strategy returned five points more annually than the S&P 500, while experiencing only slightly more volatility. (Of course, you shouldn’t tilt your entire portfolio toward momentum sectors. Think 10%.)

By incorporating a little bit of the “hot hand” into your investing strategy, you should be able to book slightly higher returns. And you don’t even have to go to the gym.

MONEY First-Time Dad

These Are the Countries with the Best Maternity Leaves

Luke Tepper
Mrs. Tepper took off four months to take care of this guy—and was paid dearly in smiles and dirty diapers. Ken Christensen

New dad Taylor Tepper argues that America needs to catch up with the rest of the world in terms of providing paid time off to new moms.

Two weeks ago, Mrs. Tepper returned to her full-time job—almost six months after giving birth to our son Luke.

She wasn’t altogether excited about the idea of leaving Luke in the hands of someone else while she relived paler experiences like commuting. Nevertheless, Mrs. Tepper soldiered on, and we ended our four-month experiment of living in an expensive city with a new child and without the income of the chief wage earner.

Right up there with “Is it a boy or a girl?” and “What name are you going with?” is another question every new mother should be prepared to answer: “How much paid time off do get from work?” If your answer is anything longer than a few weeks, you can pretty much guarantee kind words and jealous eyes in response.

We were fortunate. Mrs. Tepper, who works as a teacher, received around two months of paid maternity leave and was allowed to take the rest of the school year off unpaid. I got two weeks paid.

Most Americans are not so lucky. The land of the free and the home of the brave is one of two of the 185 countries or territories in the world surveyed by the United Nation’s International Labor Organization that does not mandate some form of paid maternity leave for its citizens. Many are familiar with the generosity of Scandinavian nations when it comes to parents bringing new children into the world, but who would believe that we trail Iran in our support of new families?

Iran mandates that new mothers receive two-thirds of their previous earnings for 12 weeks from public funds, according to a the ILO report. In America, mothers are entitled to 12 weeks of unpaid leave—but only if they work for a company that has more than 50 employees, per the Family and Medical Leave Act. And, for some context, more than 21 million Americans work for businesses that employ 20 people or fewer, per the U.S. Census Bureau.

The ILO report is full of unflattering comparisons that will leave American workers feeling woozy. Georgia—the country—allows its mothers to receive 18 weeks of paid time off at 100% of what they made before. Mongolia gives its new moms 17 weeks of paid time off at 70% of previous earnings. (Mongolia’s GDP is $11.5 billion, or about a third of Vermont’s.)

Lest you think paid time off for moms is a poor-nation phenomenon, Germany’s mothers receive 14 weeks of fully paid time off, while Canadian mothers can look forward to 15 weeks of 55% of their salary.

There are pockets of help stateside. Five U.S. states provide paid maternity leave: New York, New Jersey, Hawaii, California and Rhode Island. In Rhode Island, for example, mothers receive four weeks of paid leave—ranging from $72 to $752, depending on your earnings.

Meanwhile, however, the ILO’s maternity leave standard states that all mothers across the board should be entitled to two-thirds of their previous salary for at least 14 weeks.

Look, I’m not really saying that American women should defect to Iran or Mongolia or Georgia to push out their progeny. But it defies logic that we are the only developed nation not to have a national system in place that helps new families adjust to their new lives.

The benefits of implementing some compulsory system of continuing to pay women for a defined period of time after they give birth are known. Based on California’s family leave policy, which was instituted in 2004, economists found that employment prospects for a mother nine to twelve months after childbirth improved (meaning: more moms at that stage were employed after the bill than before it). Additionally, other research has found that mothers who return later to work are less likely to be depressed.

New York Senator Kirsten Gillibrand and Connecticut Representative Rosa DeLauro (both Democrats) introduced the Family and Medical Insurance Leave Act last year which, among other things, would provide new mothers with 12 weeks of paid leave at two-thirds of their previous salary up to a cap. But the Act is not yet a law.

A few years ago, Mrs. Tepper was in graduate school, and I waited tables. We made much much less than we do now and enjoyed no financial security. Often when I’m playing with Luke I find myself thinking, “What would we have done if he was born then?”

Taylor Tepper is a reporter at Money. His column on being a new dad, a millennial, and (pretty) broke appears weekly. More First-Time Dad:

MONEY College

4 Best Credit Cards for College Students

Mom helping her daughter move in to college dorm
Make sure she's packed one of these cards. Blend Images—Alamy

Send your kid off with one of these options this fall, and you'll sleep better at night.

You’ve no doubt heard harrowing stories of college students applying for their first credit cards, then racking up thousands of dollars in debt. It’s the stuff of parents’ worst nightmares.

The CARD Act of 2009 lessened the potential trouble students could get themselves into. The law mandated that, in order to qualify for a card, applicants must be over 21, get an adult to co-sign or prove they earn enough money to make payments.

But it’s left many parents of underclassmen with a tricky decision. Do you sign on the dotted line for your kid—thus putting your own credit score on the hook if your kid doesn’t pay the bill?

Shielding Junior from having his own credit card may seem sensible, but it’s penny-wise and pound-foolish. Length of credit history accounts for 15% of one’s FICO score. So by protecting your son or daughter from plastic, you are inadvertently hurting his or her creditworthiness. You also miss out on the opportunity to handhold him or her through an important financial lesson.

Of course, striking a proper balance between the value of credit and the dangers of its excess is paramount. Revolving debt hurts a credit score, too, and can be very costly to a kid living on a ramen budget—with APRs averaging 15% and as high as 23%.

Three options for you to consider, depending upon how much risk you think your newly emancipated child can handle:

The Training Wheels: A secured card or a low-rate, low-limit unsecured card.

If you are worried that terms like “credit limit” and “due date” will be lost on your child, you might want to sign him up for a secured card, which uses cash as the credit limit collateral.

The benefit is that Junior won’t be able to spend beyond the cap, so it’s a good way to give him practice using a card of his own without doing a lot of damage to your finances or your credit score. The downsides: You’ll have to front the cash. And unless you set a large credit limit, he may use a high percentage of his available credit, which is bad for his credit score (ideally he should use no more than 20%).

Alternately, if you don’t want to put up your cash as collateral—or your kid has enough income to qualify on his own—you might start him off with an unsecured card that has a low rate and a low credit limit. This also pens him in until he demonstrates reliability.

Once he proves himself able to handle either of these cards, have him shift to one of the advanced cards in the next category.

The picks: MONEY’s Best Credit Cards winners Digital Credit Union Visa Platinum Secured or Northwest Federal Credit Union FirstCard Visa Platinum.

The APR on Digital Credit Union’s Visa starts at a low 11.5%. To apply for this secured card, you do have to be a member of the credit union, but that be accomplished with a $10 donation to Reach Out for Schools.

The FirstCard’s rate is even lower—a fixed 10% APR (most cards today are variable rate). This card, which has no annual fee, is designed for people who don’t have a credit history: It requires applicants to take a 10 question quiz on credit knowledge and has a credit limit of just $1,000.

The 10 Speed: A rewards card

Cards that offer rewards typically have higher APRs than those that don’t. So if you child revolves debt on one of these cards, he’ll likely erase the perks earned.

Thus, rewards cards are best reserved for those students who’ve already proven themselves capable of paying off a secured or low-limit card in full and on time for a year or so. These are also good choices for those students who are over 21.

The picks: Capital One Journey Student Rewards Card and Discover It for Students.

The no-fee Journey gets your kid 1% cash back on everything, but the reward is bumped up by 25% every month he pays his bill on time. “This is a good card for incentivizing students to have the right behavior,” says NerdWallet.com’s Kevin Yuann. There’s no foreign transaction fee (a plus for those studying abroad), but a late payment fee of up to $35 and a steep 19.8% APR should scare away parents who aren’t sure about their child’s bill-paying vigilance.

The It, which also has no annual fee and no foreign transaction costs, gets your kid 2% cash back on the first $1,000 at gas stations and restaurants each quarter, and 1% for everything else. Because of the extra rewards for gas, the It is a good card for commuters, says Yuann. Cardholders also receive a free FICO score, derived from TransUnion data, on monthly statements.

While there is no fee on the first late payment, your child will pay up to $35 after that; and after a six-month no-interest window, the APR ranges from 13% to 22%.

Whichever card you end up co-signing for your child, definitely make sure you ask to get account access—and sign up for balance alerts so that you know when you need to swoop in for a teaching moment.

RELATED:
Best Credit Cards of 2013
Money 101: How Do I Pick a Credit Card?

 

MONEY The Consumer Economy

The Real Reason You’re Not Shopping at Walmart

Female shopper in Wal-Mart store aisle
Patrick T. Fallon—Bloomberg via Getty Images

Despite the improving job market, workers still don’t have that much walking around cash, which means they have less to spend at retailers.

The summer has not been kind to some of America’s largest retailers.

Traffic at Wal-Mart’s U.S. locations, for instance, was down, while sales at stores that had been open for at least a year failed to grow. Macy’s lowered its full-year sales growth projection, and sales at Kohl’s dropped 1.3% in the last three months. Nordstrom’s earnings per share were basically flat.

If you’re noticing a trend, that’s because there is one: Merchants are struggling.

The Commerce Department recently announced that retail sales decelerated in July for the fourth consecutive month, despite the fact that more workers are finding jobs, and the unemployment rate is hovering around 6%. So what’s going on?

Well, one potential answer is that you, the consumer, just don’t have that money to spend. Yes, employers have added more than 200,000 workers a month to their payrolls since February. And yes, the unemployment rate has dropped to 6.2%—about the same as in September 2008. But workers really haven’t seen the benefits of job growth in their bottom lines.

For instance, take a look at real disposable income for U.S. workers. The year-over-year change in disposable income is only 3.9%, below pre-recession levels. “While stronger job growth has played a role in sustaining consumer spending, the slower income growth has served to keep a lid on real spending activity over the past several quarters,” per a recent Wells Fargo Securities economic report.

disposable income

 

Another way to gauge the plight of workers is a metric called the Employment Cost Index (ECI), which is published by the Bureau of Labor Statistics. The ECI measures what it costs businesses to actually employ their workers—so, wages, salaries and fringe benefits like medical care. Before the Great Recession struck in 2007, the ECI gained nearly 3.5% over the prior 12 months. Since the economic recovery, however, employee costs have not risen above 2%.

wages
BLS

Rising wages are a lagging indicator; people only see raises after the jobs picture improves. Which is happening now. Fewer people are filing unemployment claims, and the number of job openings continues to nudge higher. (And traditionally, job openings have an inverse relationship with wage gains.)

So, hopefully, sometime soon demand will pick up, businesses will start giving their workers substantial raises, and those workers will go out and spend their newfound dollars. (After all, my spending is your income.)

What’s good for the economy is sometimes what’s good for Wal-Mart.

MONEY First-Time Dad

Why Millennials Aren’t Lazy, Spoiled or Entitled…

Luke Tepper

...At least not any more than other generations are.

Mrs. Tepper and I spent the better part of the past week trying to induce our six-month old son Luke to sleep through the night. After a parade of co-sleepers, swings, night feedings and magic sleeping suits, it was time — our doctor told us — to go medieval and let the little guy cry in his room until he woke up the next morning.

The (seemingly) endless sobbing was difficult to endure, but within a few nights, Luke slept all night. He did it! And so did we.

Luke’s accomplishment not only put our minds at ease, it helped stroke our parenting egos. Now when other parents ask us how he’s sleeping, we’ll be able to look them dead in the eyes and with not a small amount of satisfaction say, “We got him to sleep like a log.”

Parenting, much like sports and everything else, is competitive. If you think your kid is cuter than mine, well, we might just have a problem. Of course, this is silly. Whether a kid sleeps through the night, rolls over, or cries incessantly is largely a matter of luck and circumstance. Some parents happen to have a newborn that sleeps well, while others don’t and there are millions in between.

The mistaking of luck for skill, the conflation of happenstance for personal achievement, is pervasive in our society. You even see this play out in the management of mutual funds. In fact, I think this natural phenomenon is one reason that older generations think mine is narcissistic, instead of simply unlucky.

More than a few readers have responded to my articles with a common refrain that kids today are given much more than older generations — and thus are much more willing to spend and less principled in saving. And that this deficit accounts for Millennials’ current economic struggles.

Fine, though older generations complaining about the lives lead by their children and their children’s children is just as much a cliché. Nevertheless, a few facts and figures may help to enlighten the perception of today’s young adults and help align the views of those from different ages.

We Grew Up During the Great Recession

Millennials graduated college in the teeth of the worst economic downturn since the Great Depression. While people of all ages felt its impact, Millennials were a little more vulnerable — if not economically, then psychologically — than other groups.

In a recent speech, the chairman of the White House’s Council of Economic Advisers highlighted just how rough the Great Recession was on Millennials. “While the unemployment rate for those over 34 peaked at about 8%, the unemployment rate among those between the ages of 18 and 34 peaked at 14% in 2010 and remains elevated, despite substantial improvement,” Furman said.

Graduating into a recession leads to lower wages, which has been especially true for those who had the misfortune of turning 22 in 2008. In fact, per a recent Pew Research Center survey, “Millennials are the first in in the modern era to have higher levels of debt, poverty and unemployment, and lower levels of wealth and personal income than their two immediate predecessor generations had at the same time.”

We Pay More to Raise Our Kids Than You Did

If you had kids in 1985, and the mother of those kids worked, you paid on average $87 (in 2013 dollars) a week in child-care expenses, according to Pew. In 2010, the figure grew to $148. That means, on average, working mothers today pay over $3,000 more a year on child care than their mothers paid for them.

Of course, child-care expenses, like real estate, differ zip code to zip code. We live in Brooklyn and teamed up with another family to hire a nanny. The total cost to us? Almost $400 a week.

And it doesn’t look like families like ours well get help anytime soon. A few months ago, the International Labor Organization put out a report which found that the U.S. and Papua New Guinea are the only two countries in the world that have “no general legal provision of maternity leave cash benefits.”

Not only is it more expensive to raise your kids now, but we live in one of the two countries in the entire world that doesn’t offer any help.

You Are More Entitled Than We Are

Despite the fact that some think that seniors have earned their Social Security and Medicare benefits, entitlements have always been a transfer of wealth from the working to the elderly. Ida May Fuller was a legal secretary who retired in the end of 1939 having paid $24.75 in social security taxes. A couple of months later, she received the first retirement check and would go on to accumulate almost $23,000 in Social Security benefits.

Ida is not alone. According to the Urban Institute, a couple that earned $71,700 (in 2013 dollars) a year from 22, and retired in 2015, will receive more than $1 million in lifetime benefits (including Social Security and Medicare.) This despite paying nearly $650,000 in lifetime entitlement taxes.

Now, I’m fine paying taxes to fund a social program that has so effectively reduced elderly poverty and improved the lives of millions of people. I just don’t want those recipients of public funds to think of my generation as entitled.

Look, so much of our success is defined by luck.

If you graduated college during the Carter or Reagan presidencies, you entered an economy that was adding between 150,000 and 250,000 jobs a month. Over the past 14 years? Not so much.

Of course, you can’t do much to control your macroeconomic environment. The only thing non-policy makers can do is hope — hope that in 28 years your son is luckier than you were.

So when you think about Millennials in terms of living at home and deifying self-aggrandizing behavior, remember the economic hardships that we endured and you didn’t. Remember that others who receive Social Security and Medicare may not have really earned those funds. Remember “there but for…” and appreciate the luck you have in this world.

Taylor Tepper is a reporter at Money. His column on being a new dad, a millennial, and (pretty) broke appears weekly. More First-Time Dad:

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