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 house panel pushed through a revised tax proposal on 9/13/21. While there will most certainly be modifications before anything is finalized, it does give us a sense for which way the wind is blowing from a political perspective. Among the notable changes – a 5% increase in long-term capital gain taxes for high income earners, a bump in the top marginal tax bracket from 37% to 39.6% (and the higher rates would kick-in earlier), and a reduction in the estate tax exemption to pre-TCJA levels (from $11.7MM/person currently to ~$5.85MM/person). If you are interested to see my more detailed summary, click here.
Professor of finance at Wharton and investment strategist, Jeremy Siegel, published 10 economic predictions for the next few months and beyond. Among the highlights – the economy will be strong despite inflation, he’s predicting the market will continue to climb the next few years, stocks will continue to be the best bet for investors (except FAANG stocks), tapering will start soon, both infrastructure bills will pass, and there will be higher taxes.
The Board of Trustees for Social Security released their annual report which indicated that the program is on track to be depleted by 2033. It’s likely that lawmakers will have to take action sooner rather than later to extend the life of the program.
There’s a new bill floating around in congress to reduce the Medicare eligibility age from 65 to 60. Such a change would have a significant impact on the retirement time horizon for many.
Former Boston Celtics standout, Antoine Walker, became an instant millionaire when was drafted into the NBA at age 19. Yet he filed for Chapter 7 bankruptcy within 2 years after exiting the NBA despite making $108MM during his playing career. Now he’s counseling players on how to avoid repeating his mistakes.