Inflation and Capital Gains Tax News for Financial Advisers

The latest for financial advisers: Inflation risks, capital gains tax, and the Supreme Court’s Social Security ruling
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A roundup of the latest news and reports of interest to financial advisers.

Rising inflation? No problem for fans of emergency cash

Financial advisers continue to recommend hefty cash reserves yielding almost nothing and losing ground to inflation, under the premise that safety trumps yield, writes Jeff Benjamin.

How a capital-gains tax hike would hit advisers — and what they can do about it

Biden’s proposal to raise capital gains taxes on investments profits would hit many business owners, not just ultra-wealthy investors, writes Lynnley Browning.

Quantifying the Tax Benefit of Retirement Accounts for Better Client Decisions

This article by Peter Hofmann digs deeper into the dynamic of how the value of tax-advantaged accounts depends on the tax-free investment income earned in those accounts and demonstrates why the conventional wisdom of “stocks in taxable, bonds in tax advantaged” is not reliable.

The Harmful Power of Mistaken Money Beliefs

Understanding money and how it works is a 21st century survival skill, writes Rick Kahler.

Supreme Court Ruling on Social Security Disability Could Have Broad Effects

People seeking Social Security Disability Insurance benefits have won a Supreme Court ruling that could affect a wide range of cases that involve federal agencies’ use of administrative law judges, writes Allison Bell.

Human Capital: Ed Slott on Why Raising RMD Age Is 'Useless'

In this episode of Human Capital, Ed Slott of Ed Slott & Co. relays important tax advice related to potential changes to the stepped-up basis and estate tax, and also warns that the potential boosting of the required minimum distribution age to 75 is likely “useless,” and that lawmakers may actually be “creating a bigger problem” with such a change.

Financial Advisers’ Clients Want Access to Bitcoin: Survey

Around 22% of the respondents to an NYDIG-commissioned survey own Bitcoin, but only 3.5% own it through their advisers, writes Ming Li.

Noteworthy research

A Model Approach to Selecting a Personalized Retirement Income Strategy

Why Do Wealthy Investors have a Higher Return on their Stocks?

Borrowing to Save? The Impact of Automatic Enrollment on Debt

Financial literacy and gambling behavior in the United States

Retirement Income Beliefs and Financial Advice Seeking Behaviors

The Value of Annuities

Understanding the Black-White Wealth Gap in the United States

Tax-Rate Arbitrage: Realization of Long-Term Gains to Enable Short-Term Loss Harvesting

Go Big or Buy a Home: Student Debt, Career Choices and Wealth Accumulation

The Best Strategies for Inflationary Times