The US Department of Labor has issued a new rule that raises standards for investment advice given to retirement savers. Financial professionals must now act as fiduciaries, prioritizing the interests of their clients over their own. This rule aims to protect against conflicts of interest that can lead to unsuitable recommendations, especially in areas like retirement rollovers and insurance products. By implementing this rule, the government hopes to safeguard the significant savings that retirement accounts represent for many Americans.
After the Supreme Court blocked President Biden's initial student loan forgiveness plan, his administration has revised it to avoid legal challenges. The new plan focuses on specific groups of borrowers, such as those who have made payments for many years or attended low-quality schools. The government is also using a different law, the Higher Education Act, which gives the Education Secretary authority to forgive certain student loans. By targeting specific borrowers and using a different legal basis, the administration hopes this plan will withstand court scrutiny.
If you missed the April 15 tax deadline, file and pay your taxes immediately to avoid penalties and interest. The late filing penalty is 5% per month, while the late payment penalty is 0.5% per month. Interest is also charged based on current rates. File an accurate return even if you're missing some information, but don't guess or estimate. You have payment options like installment plans if you can't pay your balance in full.
Walmart's fintech company, One, is now offering big-ticket loans through their stores, competing with Affirm. This move threatens the existing partnerships Walmart has with other financial institutions. One's ambition is to become a comprehensive financial platform, overtaking the roles of external partners in banking, lending, and payments. Walmart's plan is to grow its non-retail revenue sources, with One playing a crucial role in its finance expansion.
The Philippine SEC has requested that Google and Apple remove Binance apps from their app stores. The regulator claims that Binance is offering unregistered securities and operating illegally in the Philippines, posing a threat to investors' funds. The SEC believes blocking access to Binance through app stores will protect Filipinos from financial harm.
Many teens are thinking about retirement but lack knowledge on how to plan. Experts recommend starting with a Roth IRA, even with small contributions, due to the advantage of time. The sooner you start saving, the more time your money has to grow tax-free. While teens usually think of banks for savings, investing with a financial advisor can provide greater returns. Opening a Roth IRA is a suggested first step for teens, even if they only put away small amounts.
In 2020, the Secure Act gave non-spouse heirs 10 years to withdraw funds from inherited IRAs, instead of the previous lifetime withdrawals. However, there are no penalties for 2024 missed withdrawals.
Before withdrawing funds, consider your financial situation and other factors that may impact your tax liability, such as your retirement date and potential changes in tax brackets after 2025.
The Inflation Reduction Act has allocated $8.8 billion to make homes more energy-efficient. Eligible homeowners can receive up to $14,000 to cover upgrades like electric heat pumps, insulation, or appliances. Low- and moderate-income households will qualify for more funding. The program aims to save households over $1 billion annually in energy costs. While the first state application has been approved, it's expected that many consumers will be able to access rebates within months.
Governments buy homes in floodplains to help homeowners move to safer areas and reduce future flood damage. FEMA's Hazard Mitigation Grant Program has purchased thousands of homes since 1989, with 75% of funding coming from the federal government. While buyouts can lead to open space and protect other homes, they can also pose challenges for governments in managing the land. Despite the ongoing housing shortage, these programs continue to provide assistance to homeowners affected by flooding.
Globally, about 28,420 "centimillionaires" exist, with the majority residing in New York City, the Bay Area, Los Angeles, London, and Beijing. These individuals hold assets over $100 million and invest differently than typical investors. They focus on preserving wealth through stable investments like real estate and avoid high-risk ventures or volatile assets like cryptocurrencies. Instead, they may invest in private credit, alternative investments, and potentially sports teams.
President Biden has proposed making community college tuition-free nationwide, believing it's a better way to tackle college affordability than student loan forgiveness. While a federal plan isn't underway yet, 35 states have implemented programs to cover remaining tuition after financial aid. New Mexico's Opportunity Scholarship stands out for extending benefits to adult learners and immigrants, and has seen a significant increase in college enrollment since its launch.
Want to build wealth? Try a 3 ETF portfolio.
First, choose a "foundational ETF" for stability, like VTI.
Add a "dividend ETF" for steady income, like SCHD.
Finally, get growth potential with a "growth ETF," like QQQ.
This strategy has outperformed others over the past decade, so consider it for long-term wealth-building.