Month: August 2004

One of America's largest publicly owned corporations recently announced the biggest stock dividend payment in history: some $37 billion. Tens of thousands of workers and retirees will benefit from Microsoft's decision to distribute some of its profits to shareholders, as well as millions of 401(k) participants whose mutual funds invest in high-tech stocks. In the past year, other companies have paid dividends for the first time, including Target, Bank of America and Proctor & Gamble. Previously, these companies reinvested profits themselves, and shareholders only realized a gain when they sold their stocks.

To the 10.5 million students in college each year and their families, college affordability is a major concern. With annual regularity, news headlines warn about rising college costs. Tuition at four-year public universities, for example, jumped an average of 14.1 percent last year. But is college truly less affordable today? Thanks to an explosion in federal grants, state aid and tax credits, the average student pays less than ever for a public university education.

As of January 2004, 250 million non-elderly Americans have access in principle to health savings accounts (HSAs). Individuals will now be able to self-insure for some of their own medical needs and manage some of their own health care dollars.