Beautiful Broadway

As summer came to a slow but steady end, Broadway ticket prices actually increased to what has been a strong season in terms of average ticket prices! During the week of August 4^th, overall ticket prices increased by more than $1 million to $23.1 million and attendance went from 12,000 to 217, 266. However, the average cost for purchasing a ticket up ticketed by around $1.25 to $106.34. This is a really great economic growth considering that last year, the figure came out to around $98.74.

Part of the explanation is the demand for top tickets. Many theatre goers are buying premium-price seating tickets which, of course, are more costly than the average ticket, or nose bleeds as some may call them. With a high-demand for more expensive tickets, there is also an increase in the amount of money theatres are earning.

Also, ticket buyers are thrilled to purchase tickets for longstanding successes such as “The Lion King” ($157.71; $2,145,484), “The Book of Mormon” ($197.75; $1,730,668), “Kinky Boots” ($142.53; $1,636,476), and “Motown ($120.54; $1,423,791). These shows are often sold out for their 8 show a week run, so we can conclude that the demand to see these shows is very high!

As some say, “the rich get richer”. Many shows not only profit from their run on Broadway in New York during the regular season, but also profit a lot more during the summer and holiday seasons when the city is filled with tourist. Some people may travel specifically to see a show, but many times, it is just stumbled upon. There is always the hype of going to see a show with the Broadway cast in New York. Some may think it’s for “bragging rights” but some agree that the memories from the productions will last a lifetime.

New York is the most beautiful city in the world to many and maybe even the worst to some, but I’m sure that almost everyone can agree that the shows performed on 42^nd Street and beyond are amazing. The thrill of seeing a production and knowing that it may or may not be here 20 or even 10 years from now is exciting. As you sit in those seats that thousands of others have once sat, you are experiencing something unexplainable, magical, and Broadway definitely deserves to benefit from this! And as we can see, they are!

Keep Emergency Fund in Cash or Invest?

 

 

 

                It is often said that people should always keep around six months’ worth of money saved in case of emergency. This money can be used to pay bills, buy food, or pay for other expenses if a family member, or two becomes unemployed. The question is if these savings should be kept at home in cash or if it should be invested in hopes of expanding the amount of money saved.

                New research fund in the Journal of Financial Planning suggests that saving it at home is not a very good idea. With the interest rate going down to zero, having large sums of money will slow down the growth of the emergency fund. If you diversify your money smartly you will see exponential growth while still having access to it whenever you need it. The only risk is having to sell at the most inconvenient time, when markets are tumbling- but the study says that is definitely a risk worth taking!

                Financial planners emphasize the fact that if you are just starting out and do not have much money saved yet, that it is best to keep your money somewhere safe and not take such huge risks yet. However, if you have more “cushion”, then you should go ahead, take a risk, and begin the investment process.

                When considering a risk such as this, it is important to take in to account factors such as how stable your job is, how many unavoidable expenses you have, and whether or not you can depend on your spouse or other family members in case of an emergency. The only thing to worry about is making sure the money is only used for emergencies and not for things such as a sale on a limited edition Birkin Bag!

                Some experts recommend using your Roth IRA during emergencies because you can withdraw money you have deposited at any time free of tax or penalty. However, the important thing is understanding each and every aspect of this. With the Roth IRA, you can only withdraw money you have directly invested, or you can be subject to a ten percent penalty! And who would want that? The entire point of emergency savings is to save, so why risk losing money because you withdrew money for something petty.

                The important thing to remember when investing your emergency savings money is that by withdrawing from it now, you can possibly loose benefits you would have had in the future. So watch where you withdraw and save save save! You’ll be happy in the future!