Millennials should talk to their parents about their parents' estate plans before an emergency arises, Erin Lowry writes. She lays out how to broach the subject and what documents and information are needed.
With the coronavirus pandemic still taking its toll, people might forget that the suspension of required minimum distributions under the Coronavirus Aid, Relief, and Economic Security Act has not been extended for 2021. Those who pay estimated taxes and skipped RMDs last year should be aware that 2020 might not be a good guide for what they owe this year, says Michael Goodman of Wealthstream Advisors.
COVID-19 accelerated the trend of people moving from high-tax states to lower-tax ones in anticipation of retirement, according to 2020 moving data by United Van Lines. New Jersey, New York, California, Connecticut and Illinois were the top five outbound states while Arizona, Delaware, Florida, South Carolina and Wyoming were the top destinations.
The recent surge of retail trading has brought new popularity to online platforms where individual investors swap information and ideas, including Twitter, Facebook, TikTok, YouTube, Reddit, Instagram and Discord. These sites have become the remote, online equivalents of Wall Street trading desks.
The upheaval and temporary law changes of 2020 led some people to make financial mistakes, financial planner Dan Moisand writes. These included waiving required minimum distributions without considering the full tax implications,
mistaking a deferment of payroll taxes for a waiver and taking unnecessary student loan deferments.
Financial experts say creating a standard will and using a power of attorney may be enough to handle asset distribution for many people who do not want to spend a lot of money on an estate plan. A will can be created using an online service, but estate attorney Patrick Jennison recommends people do their homework so they understand how the program works.
Despite a loss of 140,000 jobs in December, forecasters from IHS Markit, Oxford Economics and the University of Michigan predict millions of jobs will be added this year, amounting to the greatest employment boom since the end of World War II. However, the addition still leaves employment about 4 million jobs short of where it stood before the coronavirus pandemic, says Gregory Daco, chief US economist at Oxford Economics.
The coronavirus pandemic has raised the risk of a "lost decade" of economic growth, according to a World Bank report. The bank cut its outlook for potential global growth over the next 10 years to 1.9% annually from its pre-pandemic estimate of 2.1%.
This article provides a detailed look at what financial advisers doing a Roth IRA conversion for a client need to know. Among the issues to consider are potential advantages and disadvantages, what conversion strategy to use and tax consequences.