FINSUM
Another Big Tax Risk for the Wealthy Just Arrived
(Washington)
Most advisor attention as it regards Biden’s tax plan has been about increased capital gains taxes and the unwinding of the “step-up basis” in the inheritance of assets. However, there is another major risk and complication on the horizon. That has to do with state level inheritance laws and how they interact with Biden’s plan. The federal government has no formal inheritance tax, but rather an estate tax. States, by contrast, often have inheritance taxes. The big difference between the two is that the estate tax is levied on the estate itself, whereas inheritance taxes are levied on the beneficiaries. That means that each individual is subject to a different level of taxes based on their income.
FINSUM: To be clear, the implications of this are quite large for HNW individuals, as they could face much higher federal estate taxes in addition to high state level inheritance taxes.
New Regulations Mean Funds are Better Than Stocks
(Washington)
China has been a no-brainer for any diverse portfolio and quite frankly continues to be one…see the full story on our partner Magnifi’s site.
Summer Bond Market Flummoxes Investors
(New York)
The summer bond market has a pretty predictable summer pattern. Normally…see the full story on our partner Magnifi’s site.
A Huge Influx of Cash About to Hit ESG
(New York)
Federal workers will now have the option to invest their retirement and savings accounts directly into…see the full story on our partner Magnifi’s site.
The Best Way to Hedge Against Rising Inflation
(New York)
Whether investors—or Jerome Powell—like it or not, inflation is rising, and is as high as it has been in a generation. Sure, it could prove temporary, but in the near and medium term, investors are worried about it, which means it will be dictating returns. How to hedge inflation is a question that investors haven’t had to worry about in some time, so it is worth noting that REITs have traditionally performed very well in inflationary periods. Since many leases are tied to inflation, rents tend to rise directly in line with inflation, providing an excellent hedge.
FINSUM: REITs are not as well appreciated as an inflation hedge as some others asset classes, but that is exactly why they might be a great buy right now.