Ok, we know it is technically August already. But it is summer so we’re just running a little slower around here. Seth is back with another installment of “What’s New(s)?” highlighting the topics that he’s following closely which might have an impact on you, as well as some others that he thinks you might find interesting or fun.
Based on a recent report from The American Public Education Foundation, US Financial Literacy is at a crisis level. Two thirds of states scored a C or lower on how they prepare K-12 students to make personal financial decisions.
No one likes paying taxes, especially to the state! WalletHub published a report of the top 10 states with the best taxpayer return on investment. New Hampshire and Florida leading the way!
Fidelity is rolling out a new equity management solution for private companies. Many private companies are currently leveraging Carta for these services, so Fidelity will be a new competitor in this space.
Vanguard purchased Just Invest, a portfolio management technology with a specialization in direct indexing. For those who are unfamiliar with direct indexing, it’s simply an attempt to replicate the performance of an index by purchasing the underlying equities directly instead of using an ETF or mutual fund wrapper for that exposure. By purchasing the securities directly, there are greater tax-loss harvesting opportunities on the holdings. With this and other recent moves in the space, it seems direct indexing will soon be a retail solution offered to the masses.
Along those lines, Schwab lobbyist Mike Townsend says that a capital gains tax hike to 28% or 29% (as opposed to Biden’s proposed 39.6%) is more likely. He also is pessimistic about Biden’s proposal to end the step-up in basis for inherited assets.