The CPP covers
earnings up to a cap set around the median — $ 51,100 for 2013.
For
earnings up to the cap, the CPP aims to replace about 25 % of the income.
Employers and employees each pay Social Security taxes equal to 6.2 percent of all employee
earnings up to a cap ($ 127,200 for 2017 and indexed for wage growth) and Medicare taxes of 1.45 percent on all earnings with no cap.
For
earnings up to the cap, the CPP aims to replace about 25 per cent of the income.
Currently, the CPP covers
earnings up to a cap at $ 54,900.
Not exact matches
Second, it expands the upper
earnings cap from today's $ 54,900
up to $ 82,700.
US large -
cap stocks returned more than 9 percent in the first half of 2017, the most since 2013, and although prices are close
to all - time highs, analysts are of the opinion that valuations are not very expensive for a majority of these stocks, as stronger
earnings upped the price -
to -
earnings ratio, which has generally remained above average for quite a few years.
McDonald's and Starbucks make
up more than 60 % of the industry's market
cap and like them, the other stocks with a market
cap of more than $ 1 billion tend
to have everything investors love; like lower volatility, dividends and consistent
earnings.
During
earnings season, investors worried about the impact of a flattening yield curve on small
cap banks, which make
up roughly 25 percent of the Russell 2000, according
to Bloomberg data.
If publicly - traded
earnings, domestic or international, make
up say 5 % of total GNP (with private businesses making
up the remainder), and those
earnings are valued at 15X, then the fair value market
cap to GNP ratio would be 75 %.
I remember seeing a study that showed mean reversion in businesses; high margin businesses go back
to low -
to - average margin, high return on
cap goes
to normal, high
earnings growth peters out
to low growth... negative
to low growth goes
up to average or high growth etc..
Edit: Assumptions that usually land me in hot water are: long term rates at 4 %
to 5 %, salary adjustments of ~ 4 % per year
up to a
cap (a
cap equal
to what a senior person in my industry is paid, has mimicked my salary raises surprisingly well actually), I assume a 20 % tax rate on
earnings averaged over all accounts, then I seek
to replace an «inflation» adjusted 100K at ~ 1.5 % per year (my real goal would be a CPI adjusted 100K into the future, which very likely would not be driven by inflation, but no one has one of those crystal balls).
Predetermined
caps and vehicle restrictions mean that if you have your eye on a new 2008 Corvette, your rewards can only knock $ 1,000, tops, off the sticker price, while those in the market for a van can apply
up to $ 3,500 in
earnings toward a new 2008 GMC Savana.