Gen Xers ages 35 to 48 survive on credit cards

Gen Xers — and their older, Baby Boomer peers — see credit cards as a lifeline, according to a new study from Allianz Life.

Of the 1,000 Gen Xers age 35 to 48, and 1,000 Boomers ages 49-67 surveyed, 48% say that credit cards now function as a financial survival tool.

That reliance on debt is particularly troublesome for younger Americans, who often put off saving for retirement and other needs because of it.

"It's really significant and I think it's coming to a head with Generation X,'' says Katie Libbe, vice president of consumer insights for Allianz Life, who noted that members of that age group tend to have greater total debt than Boomers. They are burdened, she says, by a "Bermuda Triangle'' of financial stressors, including student loan debt, a tepid job market, and homes that may be worth less than what they initially paid.

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The survey highlights the potential drawbacks of having easy access to credit cards, with 76% of Gen Xers and 68% of Baby Boomers saying they received their first credit card by the age of 24.

"I think that older generations ... were brought up a little bit more to live within their means because they didn't have access to a card,'' Libbe says. "I think what's been going on over the last 30 years is the acceptance of credit cards and credit card debt, which ends up masking the fact that you're living beyond your means.''

The Allianz survey found that Gen Xers were carrying 38% more in mortgage debt, and 45% more in other debts, such as credit cards and student loans, than their Boomer peers. For instance, Gen Xers averaged $144,000 in mortgage debt as compared to $90,000 for Boomers, and $8,000 in average credit card debt as compared to $6,000 carried by the older generation.

Stock-tipping case leads to stiff penalties from OSC

A former executive assistant at a Toronto securities firm who illegally tipped friends and family to buy mining company shares has been ordered to pay fines and costs totaling $650,000.

The Ontario Securities Commission issued its reasons and decisions in the case of Eda Marie Agueci on Wednesday, after a long investigation that is estimated to have cost $2.7 million.

In all, the OSC alleged Agueci gave inside tips to eight individuals including friends and relatives, but there was no finding of insider trading against five of them. First filed in 2012, the case has dragged on and resulted in 59 days of hearings.

In a written decision, the threemember panel led by Edward Kerwin acknowledged that there is no evidence that Agueci profited from her misconduct and trading, and the proceeding has had an impact on her livelihood in the securities industry.

Three others were also found guilty of violating securities law including Dennis Wing, a founding member of First Marathon Securities, and his company Pollen; Henry Fiorillo; and Kimberley Stephany.

All four also face restrictions on acting as a director or officer and trading in securities. Both Agueci and Wing were also accused of trying to mislead OSC staff during the investigation. Agueci is ordered to pay a penalty of $350,000 and costs of $300,000.

Wing and Pollen have been ordered to pay back $520,916 earned from trading on Agueci’s tips as well as $1.75 million in administrative penalties.

Wing also must pay costs of $300,000. Fiorillo, a longtime friend of Agueci, was ordered to pay back $175,138 earned from specific trades and an administrative penalty of $350,000.

He also must pay costs of $50,000.