IRA tax traps; Student Loan Credit Repair
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The Independence Day fireworks may have passed, but the stock market put on quite a show for investors. The week started off with a bang, as big tech stocks like Amazon and Apple launched the S&P and Nasdaq to new highs on Wednesday, only for the major indexes to crash the next morning to their July lows. Find out what this means for your wallet, plus the latest in retirement planning, tax pitfalls and more.
The Dow fell 500 points on Thursday morning amid heightened concerns that fast-spreading variants (and in particular the Delta variant) could again force shutdowns and slow the economic recovery. Robinhood has filed its IPO prospectus, revealing that the fintech founders could be sitting on multi-billion dollar fortunes if things go well. For valuation-weary investors, the Fed’s latest minutes shed more light on what transitory inflation could look like and the potential impacts on the market.
Avoid the trap of double taxation
Dive into the two most family-friendly provisions of the latest stimulus package: the expanded child tax credit and the credit for children and dependents. For some parents, opting out of monthly Child Tax Credit payments might actually be a wise financial decision. And before you make after-tax contributions to a traditional IRA, understand the rules to avoid the trap of double-taxation on withdrawals.
The big crop
If you’re already retired and sitting on a taxable brokerage account and a tax-deferred IRA, here’s a handy calculator to help you figure out what to cash out first. As seniors’ residences and home care agencies face severe staffing shortages, here’s what can be done to recruit and retain these essential workers as the pandemic eases. In a terrific article, lead contributor Joseph Coughlin argues that we’re undergoing a “great reframing” of life choices and behaviors, redefining the way we view work, retirement, relationships and everything in between.
New chart: Delta Blues – Despite the strong economic recovery, the pandemic persists.
Two Ohio lawyers are suing to force their governor to reinstate improved federal unemployment benefits of $300 a week, following temporary injunctions issued after similar lawsuits were filed in Indiana and Maryland . Although the unemployment rate rose slightly in June, the United States also added 850,000 new jobs, beating analysts’ expectations.
Millennium Silver Mistakes
Congress is considering a few new bills that could drastically change credit reports for private student loan borrowers and other consumers. Last week, the White House announced changes to a notoriously mismanaged grant program for teachers. Plus, a financial planner offers advice on three common financial mistakes millennials often make.