This is a preview of Healthy money, Forbes’ free weekly newsletter on the pressing issues that matter to your financial well-being: personal finances, investing, taxes, and retirement. Click here to get it delivered to your inbox on Thursday.
If Democrats Succeed, The Rich Will Pay More Tax
As the Democrats had promised, the Ways and means tax invoice would significantly increase taxes on high-income households. The richest 1% (those earning $ 885,000 or more) would pay an average of $ 160,000 more, while the middle-income people (earning between $ 54,000 and $ 97,000) would see a modest reduction in income. ‘tax.
There is a lot of interest in converting traditional IRAs and 401 (K) to Roth IRAs this year, but the confusing five-year rule may deter some from taking the plunge. Part of the confusion is that there are actually two five-year rules, one that determines whether a distribution from a Roth IRA avoids income taxes, and the other whether a distribution made before. 59½ avoids the 10% early payout penalty. Discover the details of each rule here.
Debt ceiling and your portfolio
The widespread cancellation of student loans seems increasingly unlikely (although advocates have not given up on calling for it). But many problems with student loan repayment are still evolving. The Ministry of Education has just published a draft potentially radical changes to the rules of service and reimbursement. Meanwhile, one of the nation’s largest student loan management companies announcement he wants to end his contract with the ministry. If other service companies follow Navient’s lead, there could be a huge service mess when the Covid-19 moratorium on student loan repayments ends in February.
In the meantime, there will be no resolution this week deadlock in Congress on raising the federal debt ceiling, says Treasury Secretary Janet Yellen must be done before October 18. You might think that this dust inside the boulevard isn’t directly affecting your wallet, but it does, from interest on your credit card debt to your investment wallet. Find out how.
HSA for retirement
Most people use their HSA during their working years to pay for medical bills that aren’t covered by insurance, such as deductibles and co-payments. But if you can pay for routine medical expenses from other sources, you should let your balance consist and use it during retirement instead.
One of the proposals in the budget reconciliation bill obliges employers with five or more employees to automatically enroll them in a pension scheme. But employers can’t choose just any IRA, it must have the possibility to convert the balance of the account in an annuity upon retirement. It is still not certain that the government will create methods of fulfilling this mandate that will weigh as little as possible on employers, especially smaller ones.
New chart: the hangover of the pandemic persists – The soaring electricity prices in Europe
Another SPAC-backed company has hit the slippage: fintech insurer Hippo is down 50% since its IPO in August. We explain what went wrong here.
In yet another The Wells Fargo scandal, the FBI and the U.S. Attorney’s Office for the Southern District of New York City filed and settled a civil lawsuit against the bank on Monday. The lawsuit alleged that the bank fraudulently overcharged hundreds of business customers who used its foreign exchange service, which is a global marketplace for the exchange of national currencies between them. To resolve the dispute, Wells Fargo
Oil prices have jumped about 10% over the past month as Hurricanes Ida and Nicholas swept across the southeast and shut down production in the Gulf of Mexico for weeks. The price of UK benchmark Brent Crude and US West Texas Intermediate oil jumped about 2% every Monday morning to $ 79.56 and $ 75.35 a barrel. While there is a surge in energy prices, technological actions were hit hard as investors fear uncertainty in Washington over raising the debt limit.