The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community. April is here and it is Financial Literacy month at MONECO Advisors. Having a strong foundation when it comes to financial literacy can help support a host of various goal, such as retirement, saving for education and debt management. All month long we will be providing you content on the importance of spending, savings, budgeting and investing.
In this issue:
- The American Jobs Plan (2 min read)
- Underestimating health care costs in retirement? (3 min read)
- Financial Literacy for College Students (5 min read)
- BONUS #1: Webinar Invite - Turning Points On The Road To Recovery
- BONUS #2: Shredding Day!
If you enjoy our Weekly Wealth of Knowledge, don't forget to check out our content on Facebook, Linkedin, and Twitter! This week we have one of our Financial Advisors, Dana Preis, introducing our latest content and events.
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The American Jobs Plan
President Joe Biden introduced the much-anticipated American Jobs Plan, which outlines an approach to spend roughly $2.2 trillion on the nation's infrastructure and other projects.
As part of the legislative process, the Biden administration also laid out a proposal for paying for the domestic investment. The plan includes raising the corporate tax rate to 28% from 21%, cracking down on companies that use overseas operations to manage profits, and eliminating tax breaks for some industries.1
Right now, the proposal does not include any new taxes on individuals. It's only targeting corporations expecting that the 8-year plan would pay for
itself in 15 years.2
But some believe that in the coming weeks, the Biden administration intends to put forward additional tax initiatives that target high-earning Americans.
One proposal that may get introduced would raise taxes on families who earn more than $400,000 a year. There also has been discussion about a higher capital gains tax rate for individuals earning at least $1 million a year and adjustments to the estate tax exemption.3
At this point, it's uncertain what—if any—tax changes for individuals will be taken up by Congress. The initiatives that will take priority may become more clear in the weeks ahead.
Challenge yourself to be patient during this period of debate over tax proposals. If they introduce changes, a sound analysis should drive portfolio decisions, not knee-jerk reactions to current events.
Remember, this letter is for informational purposes only. It is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your tax strategy. If you are concerned about one or more of these proposals, please give us a call. We'd welcome the chance to hear your perspective, and hopefully, we can provide some guidance.
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Underestimating health care costs in retirement?
When preparing for retirement, it's important to make sure you have enough money to cover essentials. And medical care is one of the most essential of them all. Unfortunately, far too many people are dangerously underestimating how much their care will cost them. If you're one of them, you could find yourself draining your nest egg much faster than you imagined because you have out-of-pocket medical expenses you didn't plan for.
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Financial Literacy for College Students
Financial literacy is the understanding of key financial concepts and skills. Someone’s level of financial literacy is a strong indicator of how financially successful they’ll be in the future. Financial literacy for college students is especially important.
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Webinar Invite: Turning Points on the Road to Recovery
As the world starts to recover from the COVID-19 pandemic and the economic disruption it caused, we are excited to invite you to a timely exclusive webinar — 2021 Outlook: Turning Points On The Road To Recovery. Click below for more information and to register.
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Shredding Day!
While you're here, be sure to check out our FREE Shredding Day event on our website. This will be held outside of our office in the lower parking area on Saturday, May 8th from 10:00 a.m.- 1:00 p.m. As a bonus, while you are cleaning out your closets as well, we will also be partnering with //www.saveasuit.org/ and collecting unwanted professional clothing to be donated to veterans transitioning back into the workforce. We hope to see you all there!
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1. CNBC.com, March 31, 2021
2. USAToday.com, March 31, 2021
3. Bloomberg.com, March 14, 2021
The content is developed from sources believed to be providing accurate information.
The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for gene