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Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management

City:Northbrook

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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Consumer Spending Trends: Are Americans Spending Too Much on Cars They Can't Afford?

A new report finds that the median-income families in only one major U.S. city can afford the average price for new cars and trucks.

| BY Donald Liebenson

Americans love their cars, but is this a financially doomed romance? A new Interest.com consumer spending trends finds that the median-income families in only one major U.S. city can afford the average price for new cars and trucks.

Interest.com’s 2014 “Car Affordability Study” determined how much the typical household in the nation’;s 25 largest cities should be spending on a new vehicle. Interest.com considered key three factors in calculating how much a household could afford to spend on a car or light truck: a downpayment of a least 20 percent; financing no longer than four years; and principal, interest and insurance not exceeding 10 percent of a household’s gross income.

The average price of a new car or truck sold in the United States in 2013 was $32,086, according to the Kelley Blue Book. Only in Washington, D.C., could the median income support buying a vehicle at that price, the Interest.com survey found. Median-income buyers in Tampa could only afford to spend $14,209 on a vehicle. The differences across major cities were due not only to median household incomes but to a wide range of tax rates and insurance costs.

The results point to one important conclusion, according to Interest.com: “Most Americans are spending far more than they can truly afford on their vehicles.”

American households took on $241 billion in additional debt in the fourth quarter of last year, according to the most recent Federal Reserve Bank of New York report. The debt was driven in large part by car loans, which grew by $18 billion. Analysts say this is either a sign that Americans are more confident about their financial futures or they may be struggling to maintain spending levels.

Here’s how America’s 25 largest cities rank, according to the Interest.com car affordability report

1. Washington, D.C.
Affordable Purchase Price: $31,940
Maximum Monthly Payment: $628

2. San Francisco
Affordable Purchase Price: $26,786
Maximum Monthly Payment: $537

3. Boston
Affordable Purchase Price: $26,025
Maximum Monthly Payment: $507

4. Baltimore
Affordable Purchase Price: $24,079
Maximum Monthly Payment: $468

5. Minneapolis
Affordable Purchase Price: $24,042
Maximum Monthly Payment: $470

6. Seattle
Affordable Purchase Price: $22,963
Maximum Monthly Payment: $466

7. Portland, Ore.
Affordable Purchase Price: $21,985
Maximum Monthly Payment: $397

8. Denver
Affordable Purchase Price: $21,835
Maximum Monthly Payment: $432

9. San Diego
Affordable Purchase Price: $21,781
Maximum Monthly Payment: $433

10. New York City
Affordable Purchase Price: $21,464
Maximum Monthly Payment: $431

11. Philadelphia
Affordable Purchase Price: $21,069
Maximum Monthly Payment: $419

12. Chicago
Affordable Purchase Price: $20,616
Maximum Monthly Payment: $417

13. Los Angeles
Affordable Purchase Price: $20,385
Maximum Monthly Payment: $410

14. Sacramento
Affordable Purchase Price: $19,965
Maximum Monthly Payment: $397

15. Dallas
Affordable Purchase Price: $19,959
Maximum Monthly Payment: $389

16. Houston
Affordable Purchase Price: $19,811
Maximum Monthly Payment: $386

17. Milwaukee
Affordable Purchase Price: $19,297
Maximum Monthly Payment: $373

18. Atlanta
Affordable Purchase Price: $19,122
Maximum Monthly Payment: $376

19. St. Louis
Affordable Purchase Price: $18,550
Maximum Monthly Payment: $371

20. Pittsburgh
Affordable Purchase Price: $17,298
Maximum Monthly Payment: $340

21. Phoenix
Affordable Purchase Price: $17,243
Maximum Monthly Payment: $348

22. San Antonio
Affordable Purchase Price: $17,137
Maximum Monthly Payment: $334

23. Detroit
Affordable Purchase Price: $17,093
Maximum Monthly Payment: $332

24. Miami
Affordable Purchase Price: $15,188
Maximum Monthly Payment: $295

25. Tampa
Affordable Purchase Price: $14,516
Maximum Monthly Payment: $282



About the Author


Donald Liebenson

dliebenson@millionairecorner.com

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.