Author: News Room
Many parents are looking for ways to give their kids a bright future. While money can’t necessarily buy happiness for our children, investing early and often for generational wealth can pave a more comfortable path forward. Kids have an advantage over adults when it comes to investing. They have a lot more time to achieve their goals. With decades or even a half-century to invest, compound interest can truly become the eighth wonder of the world for our children. Investing for generational wealth can allow our little ones to eventually: Avoid the burden of student debt. Buy a home with…
Most ‘Buy Now, Pay Later’ Users Have Credit Card Debt Federal data shows Americans are using “Buy Now, Pay Later” services at ten times the rate they did in 2019. However, that doesn’t mean these consumers are staying out of debt. A new study shows that 69% of ‘Buy Now, Pay Later’ users have ‘revolving’ credit card debt that carries over from month to month. Buy Now, Pay Later services like Affirm, Shop Pay and Afterpay allow users to break up a large payment into several smaller payments. However, that often comes with high interest rates and/or late fees. [Fox…
How can you ensure you’re best-positioned financially before buying your next home? Buying three homes helped me become a debt-free millionaire in my thirties. Here’s what you can do. Don’t Buy At The Top Of Your Budget Start your purchasing budget on half of what the bank approves. My husband and I stuck to this rule for the last three homes we bought because our goal is to become financially independent in our forties. When we bought our first home together, we were prequalified for at least a $200,000 purchase price on his salary and $400,000 using both our salaries.…
Topline As waves of layoffs ripple through the long-booming labor market, the Labor Department’s jobs report on Friday showed a continued slowdown in employment—adding to a slew of signs this week that the economy may be cooling more quickly than believed, potentially risking the hard landing Federal Reserve officials have long tried to avoid. Key Facts Total employment increased by 236,000 in March—in line with economist expectations and marking the lowest monthly gain since December 2020, according to data released Friday by the Labor Department. Despite growing reports of corporate layoffs hitting the nation’s largest employers, the unemployment rate ticked…
Nobody likes to get letters from the IRS, much less statements involving fines. Both are easily avoided. The IRS provides multiple ways to file before the April 18th deadline this year. Here’s what you need to know: * Eligible individuals and families who earned $73,000 or less in 2022 can use IRS Free File, available only on IRS.gov, to electronically file their taxes. * All taxpayers, regardless of income, who need more time to file a return can use IRS Free File as an easy and quick way to electronically file for a six-month extension before April 18, 2023. An…
President Joe Biden’s signature student loan forgiveness plan has been blocked by federal courts since last fall. The fate of the program is now in the hands of the Supreme Court, with a formal ruling expected this summer. If the Supreme Court winds up striking down Biden’s student debt relief initiative, advocates have pointed to a potential backup option that could allow the administration to essentially reissue the program under a different legal authority. But a new legal development could scramble that plan. Here’s the latest. Supreme Court To Determine Fate Of Biden’s Student Loan Forgiveness Plan Biden’s student loan…
Robert Goulder of Tax Notes and professor Mitchell Franklin of the Le Moyne College Madden School of Business discuss college sports programs’ not-for-profit status in light of compensation for name, image, and likeness rights. This transcript has been edited for length and clarity. Robert Goulder: Welcome to the latest edition of In the Pages. I’m Bob Goulder, contributing editor with Tax Notes. Now, if you’re anything like me, you probably spend a lot of time watching collegiate sports — honestly, probably too much time. One observation, though: If you’ve been paying attention, you just can’t help but notice that the…
April 7 marks the day that beer was allowed to be legally manufactured and sold following a long, dry Prohibition. On March 22, 1933, President Franklin Roosevelt signed the Cullen–Harrison Act into law, which moved the US away from Prohibition by allowing the manufacture and sale of beer that was approximately 4% alcohol by volume (just a little less than the average today) and some wines. After he signed, Roosevelt reportedly remarked to his aide Louis Howe, “I think this would be a good time for a beer.” Prohibition would officially remain in place for a few more months, but…
A short grantor trust walks into a bar. After a few too many drinks he starts flirting with a pretty beneficiary, promising her a step up in his assets. But before he seals the deal, the bartender pulls the stool out from under him, shouting, “Get out! You’ve got no basis stepping up here.” “Based upon the detailed discussion that follows, we have concluded that there is a solid argument that there is a basis adjustment to the fair market value of the assets of a grantor trust on the death of the grantor.” EXECUTIVE SUMMARY: It is the duty…
Thought you wanted to be a millionaire? The “Billionaire Tax” might cause you to reconsider. All American earners are subject to federal income taxes, but not everyone is subject to the same tax rate. While middle-class Americans pay, on average, roughly 14% in federal taxes annually, the wealthiest American families frequently use loopholes to avoid paying these tax rates. The question of whether or not the richest Americans pay enough in taxes for the amount of money they have compared to the average American’s net worth has been a hot topic of debate, in all likelihood, since July 4, 1776.…
