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.
The passive investing behemoth Vanguard is going to begin offering private equity investments for self-directed clients that are qualified purchasers and accredited investors.
Fidelity is rolling-out no-free investment accounts for teens between 13 and 17. This offers a safe solution for teens as these accounts prohibit certain more risky strategies, like the use of options and margin for leveraged trading.
Among Biden’s most prominent tax proposals is beefing up IRS enforcement. Biden has proposed giving the IRS an additional $80 billion in funding to target tax avoidance. Additionally, they would like banks to be required to report certain deposit/withdrawal activity in bank accounts.
Biden released his first budget proposal on May 27th which gave some insights into how certain aspects of the American Families Plan might come into effect. As some feared, Biden proposed that the capital gains tax hike would be retroactive to April 2021. It’s likely to be met with a lot of pushback, but only time will tell…
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.
The millionaire surtax bill has been revived in congress which proposes an additional 10% tax to incomes over $2MM for married couples ($1MM for individuals).
Inflation has ticked-up over the past year, yet 7 in 10 investors see inflation as transitory. On the bright side, stocks typically do well in an inflationary environment.
Author of “I Will Teach You to be Rich”, Ramit Sethi, posted a good thread on Twitter, refuting the idea that you can get “better” investment access as you become wealthier. SPP PCFO Bob Dockendorff agrees with the sentiment as stated in his recent blog post!
