It might be hard to believe, but more than one-third of Americans who earn more than $500,000 a year say they are living paycheck to paycheck and struggle to make headway on their long-term financial goals, according to a new survey from Goldman Sachs. The survey cited concerns over inflation and market volatility and found that fewer people are increasing their retirement savings, and more people are reducing their savings rates. Among the lowest earners, pulling in less than $50,000 a year, 61% say they are living paycheck to paycheck, while at the high end of the spectrum 34% of respondents earning between $300,000 and $500,000 say the same; among respondents earning more than $500,000 a year, the figure is 37%.
Among other most-read wealth management articles this week:
Most expensive sandwich tray ever? J.P. Morgan Securities has lost its bid to overturn a $4.25 million arbitration award relating to the termination of an advisor over an expense-account dispute. The advisor, Brent Bodner, filed a complaint with brokerage industry self-regulator Finra alleging that J.P. Morgan had wrongfully terminated and defamed him over a deli platter he ordered and billed to the company for a 2024 Super Bowl get-together at his home. Bodner's assistant had mistakenly listed the location of the event as the restaurant, rather than Bodner's residence. J.P. Morgan asked a federal court to overturn the award, but the court upheld the arbitration panel's decision.
Starting good habits early. The good news for Gen Zers is that they are starting to build wealth earlier than previous generations, according to a recent report by U.S. Bank. On the other hand, a Nationwide survey found that many are worrying about their finances every day and only making financial planning decisions with a one-year time horizon. We offer five tips to help Gen Zers get on solid footing once they land a job and prepare to leave their parents' house, including tabulating the expenses they can afford, creating a budget that includes contributions to retirement savings and an emergency fund, and thinking ahead about health coverage.
Bonds' balancing act. There is a lot of anxiety in the bond markets these days, with mounting fears of an impending run as 10-year and 30-year Treasury yields reach levels not seen in many years. Investing pros have different ideas on how to play it, with some seeing opportunities in municipal bonds and Treasury-Inflation Protected Securities. Noted bond expert Dan Fuss favors intermediate Treasuries with maturation dates in the range of five to seven years, which offer comparable returns to longer-term Treasuries but with less risk.
Robinhood's AI push. Robinhood has taken the wraps off a new set of products and tools for investors, including a simplified way to trade based on artificial intelligence. The brokerage firm is also extending its trading hours and offering events contracts pegged to corporate earnings. The introduction of agentic trading builds on an earlier AI announcement Robinhood made this year and will allow customers to create an agentic account and choose from a menu of AI models, including OpenAI GPT-6 Luna.
Say hello to Charley. Charles Schwab is getting in on the artificial intelligence game with Charley, a new chatbot it plans to roll out this month. Schwab says its AI assistant will help investors retrieve information and perform tasks such as updating watchlists and adding beneficiaries. Schwab also plans to offer the Charley chatbot to the registered investment advisors who use its custodian service.
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