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Male and female graduates earn comparable salaries but the gap widens (Think Advisor)
Economists Jaison R. Abel and Richard Deitz examined the US Consensus Bureau’s American Community Survey from 2009-2013 and found the wage gap between males and females aged 22 to 27 who had at least a bachelor’s degree was minimal. The research showed females earned 97 cents for every dollar their male counterparts made. However, the researchers found that the gap widened over the course of a career with males out earning females by 15% between the ages of 35 and 45. According to Think Advisor, the pair believes this is because “Women are more likely than men to spend time out of the labour force to bear and raise children.” They continued, “This interruption in a working career reduces the accumulation of work experience and human capital, which has been shown to have a negative influence on earnings.”
Berkshire Hathaway buys Precision Castparts (Business Insider)
Warren Buffett’s Berkshire Hathaway announced its biggest deal ever, buying Precision Castparts for $US37.2 billion. The all cash deal represents a 21% premium to Friday’s closing price. Berkshire had slowly been building a position in Precision, accumulating 3% of the company since 2012. “All deals seem expensive to me, but this one doesn’t. We’re certainly paying a very good price,” Buffett told CNBC.
Republicans debate Social Security (Investment News)
Last Thursday’s Republican debate had a brief mention of Social Security. According to Investment News, New Jersey Governor Chris Christie wants to gradually increase the retirement age from 67 to 69 and cut out Americans who make more than $US200,000 per year and have in excess of $US4 million saved. On the other side was former Arkansas Governor Mike Huckabee, who defended the program, saying he would like to keep it as is. According to Huckabee, 60 million Americans rely on the program to provide 90% of their income.
More employers are offering retirement matching (Financial Advisor)
Data obtained by Ascensus, a retirement and college savings services provider, found 55% of the 40,000 401(k) plans that it administers offer a match to employees. That marks an uptick from the 53% of companies who matched last year. Ascensus told Financial Advisor the fact that more companies are offering a match “points to an improved confidence in the economy, as more companies can invest in their employees’ retirement.”
Apollo buys RCS Capital’s wholesale unit (Wealth Management)
Apollo Management Group is buying RCS Capital’s wholesale unit, Cetera Financial Group, for $US25 million. The acquisition brings Cetera into the fold as part of Apollo’s newly created AR Global Investments division. According to Wealth Management, “RCS Capital will retain the brokerage business operating as Cetera Financial Group, the investment banking and capital markets group and its investment management unit Hatteras Funds.”
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