Ezra Financial

They were the guinea pigs of the great 401(k) experiment—and they aren't ready for retirement. “I’m grateful for the 401(k), but there’s no guarantees as well.”

First they fixed toilets. Then they became millionaires. 🔗https://on.wsj.com/4eyXGJC

The CFPB just published its annual report "Making Ends Meet in 2024" on the state of the American consumer. The report describes households' ups and downs, their access to credit, and how different groups are fairing. Some important findings: ↘️ More families had difficulty paying their bills and average financial well-being decreased. The share of families with difficulties paying bills or expenses increased from 38 percent in 2023 to 43 percent in 2024, matching the level in 2019 ↘️ More families are unprepared for even a short interruption of income. If they lost their main source of income, 42 percent of households could cover expenses for a month or less by using all sources, including savings, selling assets, borrowing, or seeking help from friends or family, and 22 percent could cover expenses for less than two weeks. ➡️ Income variability remained steady in 2024 but was higher than in 2019. ➡️ Access to credit remains difficult for some people. Of the consumers who applied for credit, 39 percent were turned down or did not get as much credit as they applied for. Meanwhile, 27 percent of all consumers decided not to apply because they worried they would be turned down. ↘️ The share revolving credit card debt fell slightly. ➡️ Large disparities in financial stability and health continue. While 38 percent of non-Hispanic white consumers had difficulty paying bills or expenses, 63 percent of Black consumers had difficulty, and 51 percent of Hispanic consumers had difficulty. Renters and consumers with student loans were also much more likely to have difficulty paying bills or expenses. Read the report for more!

Our very own Dashell Laryea was featured in Inc. Magazine. The article discusses how the 401(k) has left 60% of the American workforce behind, how employer-supported emergency savings accounts can help, and how together we can reclaim financial security for every worker in this country. Thanks to Farrell Evans for the scoop! Link to the article in the comments. #ERISA #frontline #Progress

We are delighted to introduce our 2025 Business Accelerator Fellows. These founders are prepared to tackle the major issues of our time and continue advancing their ventures. You can learn more about the Fellows and their ventures here: https://lnkd.in/e6AYM4fC Join us in congratulating the 2025 Business Accelerator Fellows: Jordon Durst (Ask Alex), Greg Spencer (Common Good Marketplace), Dashell Laryea (Ezra Financial), Ebun Feludu and Tega Feludu (Kokari Coconuts & Company), Kimberly Schreiber (NeuroNav), Hugh Chichester (Niya), Alexander Taylor and Brian Davis (Orb Aerospace), Emily Harburg, Ph.D. (PairUp), Daniel Lie (Pronoia), Teresa Tanner and Brieana Hall (Reserve Squad), Will Clayton (Sky Harvest), Christian McGuigan and Timothy Reckart (Sycamore Studios)

They used to be known as serfs. Today, they are called hourly workers. In the middle ages, field workers could work for landowners for 30 years and own nothing at the end, while landowners retained the land, profits, and harvests. The issue was never really the positional difference between the landowner and the serf. The issue was–and still is– the difference in access to ownership. To own something it must be permanent; however, the labor of the serf is transient, nor does it yield dividends or appreciate in value. To change this you either need broad-based sharing of equity (actual ownership of a thing) and/or a reassessment of how we reward productivity (helping people act like owners). These strategies ask a fundamental question, “What if we were paid not according to our title but in relation to how we showed up at work?” The result: people would retain more ownership of their futures, if not also land, profits, and future harvests. Photo: L'homme à la houe, Jean-François Millet, 1862. 

Raj Chetty's latest study shows that the employment rate in a neighborhood is the strongest predictor of future economic outcomes for the children in that zipcode. Your parent's job was important. We knew that. What we didn't know was that your friend's parent's job was also important to your upward mobility. The research reinforces the value of a good job. Making a living means a life worth living for future generations. As the sociologist William Julius Wilson wrote: "Many of today’s problems… crime, family dissolution, welfare, low levels of social organization, and so on… are fundamentally a consequence of the disappearance of work."

Google's doodle this year is on point. It's a celebration of the tradespeople who gave us this day off work. The first Labor Day began as a peaceful protest for which many risked their jobs to participate. The ten thousand or so electricians, bricklayers and other tradespeople marched for 8-hour days, no child labor, and more pay. It was met with cheers. Yet, they would have to wait 7 more years before everything changed. Another strike. This time in response to Pullman Palace Car Company who lowered wages without lowering rents in the company town outside of Chicago. The country buckled. President Cleveland, worried about losing the middle-class vote, signed a bill into law on June 28, 1894 declaring today a national holiday. Happy Labor Day! Take the day off… you've earned it.

"Time to rethink retirement" says Larry Fink in his annual 2024 letter. The U.S. Census Bureau found in 2022 that nearly half of Americans aged 55 to 65 don't have a single dollar saved. "Why?" asks Larry. "Well, the first barrier to retirement investing is affordability. Four-in-10 Americans don’t have $400 to spare to cover an emergency like a car repair or hospital visit. Who is going to invest money for a retirement 30 years away if they don’t have cash for today? No one." We couldn't agree more. At Ezra Financial, we're inspired by BlackRock’s Emergency Savings Initiative. Since 2019, Blackrock and partners like Timothy Flacke at Commonwealth have helped 10 million people put away $2 billion in liquid savings! Not only are these people better off today, but one step closer to a better tomorrow. We recommend you read the letter but if not, Courtney Vinopal's summary at the Morning Brew is also excellent. Sources: https://lnkd.in/eeW3FxKC, https://lnkd.in/g7YBQh5c #tryezra

Welcome, Micah Berman! It's time to build for the rest of us. #tryezra