Displaying items by tag: biden

(Washington)

This week was a big one for infrastructure stocks. After years of discussion, Biden took action and put forth an eye-opening $3 tn package (in two parts) for American infrastructure. The package would focus on infrastructure, education, work force development, and fighting climate change. The aim is to make the economy more productive. However, for the stock market, one of the immediate benefits is how such government dollars would affect infrastructure stocks. Most specifically, look at the following sectors: machines, construction, and materials stocks.


FINSUM: $3 tn is a great deal of money, and a lot of it will likely flow into the private sector to fulfil these mandates. Time to dig in and pick winners. We will continue coverage on this in the coming week.

Published in Eq: Materials

(Washington)

Many advisors may not have realized it yet, but the new COVID relief package passed by Congress recently has many benefits for upper middle class Americans and even those in the mass affluent category (which constitute tens of millions of clients for advisors). Other than the $1,400 checks, there are also two lesser known details advisors need to be aware of. If a client qualified for a check last time, but did not get one, they can claim the money they would have been entitled to as a credit against their taxes. It is a bottom line deduction that comes directly out of taxes owed. If no taxes are owed, they should get the credit as a refund check Additionally, the package offers enhanced child tax credits. This is $3,600 per child under 6 years old, and $3,000 per child between 6 and under 18 years old. The latter used to be for those under 17, so this helps those with 17 year-old children. Finally, those who have student loans that will be forgiven will not have to pay taxes on the forgiven amounts, which is a massive benefit for those who qualify.


FINSUM: There is a lot more to this package than many realize. Advisors should take a deeper dive to see what applies to their clients.

Published in Wealth Management
Tuesday, 09 March 2021 17:25

Big Tax Changes are Coming for Your Clients

(Washington)

This is one of the most uncertain times in recent history, and not just because of political divisiveness and the pandemic, but because many of the new administration’s policies are likely to be very different than the Trump administration’s. That extends to taxes, where there is a high degree of anxiety about forthcoming changes, most of which high earners expect to be punitive. Because there is a wide range of possible outcomes, advisors need to work hard to plan for what different scenarios might look like. Accordingly, now is the right time to beef up on tax planning staff, or at the least review your tax planning playbook and keep a close eye on the news.


FINSUM: In a year, when new tax policies are known, you want to be able to tell clients “don’t worry” we have been planning for this and you will be fine. The work to get there needs to start now.

Published in Wealth Management
Tuesday, 09 March 2021 17:23

Why ESG is About to Grow in Influence

(Washington)

ESG has been doing very well. Not only is it getting more public attention, but it is receiving significant inflows. Well, things are about to change from the corporate and regulatory perspectives as well. The Biden administration’s SEC is preparing to adopt a new policy on shareholder resolutions that relate to things like ESG and social justice. The Trump administration had made it very easy for companies to dismiss such resolutions as “micro management” but the current SEC aims to give them more teeth. While such resolutions—things like demands to report gross carbon emissions, or minority compensation—are not legally binding, they do put management under pressure to answer tough questions and garner a great deal of press.


FINSUM: This is going to compel top management to play ball with shareholders on resolutions they would otherwise love to ignore.

Published in Eq: Total Market
Wednesday, 24 February 2021 16:47

Trump’s Fiduciary Rule Just Went Live

(Washington)


In what comes as a surprise to the entire industry, President Biden’s administration has just let the Trump-era version...View the full story on our partner Magnifi’s site

Published in Wealth Management
Page 17 of 25

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