Good morning. It's Thursday, Nov. 20, and welcome to this week's Business & Finance newsletter. This week, we're covering homeownership, investment banking, and life insurance. Homeownership is on our minds right now because of a report from the National Association of Realtors that's been making headlines, claiming that the median age of a first-time homebuyer hit a record high this year—keep scrolling to find out exactly how old that buyer is.
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—Phoebe Bain, 1440 Business & Finance Section Editor |
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Honing in on Homeownership |
Homeownership 101
Historically, homeownership has been considered a cornerstone of the American Dream. Today, about 65% of American households own a home, and roughly 5% own more than one. Homeowners not only view these residences as a place to live, but also a path to building substantial wealth.
Centuries ago, homeownership became more common as political systems evolved to allow individuals, rather than governments like monarchies, to own land. In the US, the number of homeowners increased as mortgages became more accessible: Roughly 74% of today’s US homeowners used a mortgage to finance their home.
Real estate makes up roughly half of the typical American homeowner’s household net worth. The financial benefits of homeownership include diversifying one’s financial portfolio while protecting it from inflation, building equity, and more.
The numerous costs associated with homeownership are often cited in the ongoing debate over whether renting or owning makes more financial sense, including homeowners insurance, property taxes, and budgeting for maintenance and repairs.
Also, check out ...
> US homes have been shrinking in recent years. (More)
> It takes an average of 14 days of work to afford a monthly mortgage in the US. (More)
> The income needed to buy a home in 2025. (More)
> A "rent versus buy" financial calculator. (More)
Explore everything else we've found on Homeownership. |
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Investigating Investment Banking |
What is investment banking?
It’s an investment banker’s job to keep their finger on the pulse of the financial markets and help organize huge, complicated financial transactions for clients. Those transactions can include debt financing, initial public offerings (1440 Topics), mergers, and acquisitions. The clients are typically large institutions such as corporations and governments.
Another way to think of an investment banker’s job is that they raise money for these institutions. Helping issue new securities (like shares of stock) for a corporation is one way to do that.
Because of something called the Glass-Steagall Act, there was a 66-year period in history from 1933 to 1999 during which investment banks and commercial banks (the banks where you deposit your paycheck) were separated by law.
Today’s investment banking analysts often say they spend the vast majority of their roughly 95- to 120-hour workweeks perfecting PowerPoint decks and Excel sheets. Perhaps that’s partly why, for many young college graduates, investment banking’s shine has dulled in recent years.
Also, check out ...
> "Book building" is considered the most efficient way to price securities. (More)
> League tables show the number of deals top investment banks execute in a given time period, signaling market share. (More)
> The investment bankers who die on the job. (More)
> What do investment bankers actually do all day? (More)
Explore everything else we've found on Investment Banking. |
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Looking into Life Insurance |
Life insurance, explained
Life insurance insures your life by paying a sum of money to your beneficiaries (usually family members) after your death. These policies essentially estimate how likely you are to die during a certain period of time.
How much you pay for life insurance, or your "premium," is based on a number of factors: Higher-risk people—like those with a bad driving record or preexisting health conditions—will likely have a higher overall cost than those who are considered lower risk. The calculations are based on mortality tables, which help determine the probability of death for specific populations.
Most life insurance policies cover both accidental death and death from natural causes. But some policies have restrictions: Most will not cover death by suicide within the first two years of coverage, death from hazardous activities, or death from war or terrorism, for instance. There typically aren’t any restrictions on how beneficiaries are allowed to use the money after the insured person dies.
Also, check out ...
> The concept of life insurance can be traced back to ancient Roman “burial clubs.” (More)
> Paperwork errors cost families millions in life insurance payouts. (More)
> The murdered pastor with a penchant for life insurance fraud. (More)
> A life insurance cost calculator. (More)
Explore everything else we've found on Life Insurance. |
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One Story We're Taking Stock In |
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You may have heard that the US Mint in Philadelphia pressed its final penny last week after President Donald Trump ordered an end to penny production earlier this year. As many have joked, the decision "makes cents," as it costs nearly 4 cents to create each 1-cent penny.
However, it wasn't long after the announcement that people started asking questions: How will we get exact change back at a store if we pay in cash? What should we do with all the pennies sitting in our piggy banks at home? An expert on the penny attempted to answer these questions in a fascinating article (linked below), and found that the government has yet to come up with a plan for a future without the penny. |
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> The government has no plan for America's 300 billion pennies. (Read) |
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In partnership with Fidelity |
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Need Help Choosing Your Investments? |
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The median age of a first-time homebuyer in the US hit a record high of 40 in 2025. |
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