Given their widespread popularity lawmakers have scrambled to put together a series of changes to a popular retirement product in the last year and it looks like more are coming. There appears to be bi-partisan support for the additions building on the 2019 Secure act which tried to increase retirement security. The House and Senate bills both include changes that would remove the maximum amount on the Qualified Longevity Annuity Contract. Previously it was capped at the minimum of $135,000 or 25% of your retirement accounts. The Senate provision also bumps the minimum up to $200,000. The new provisions also include auto enrollment in 401(k) plans and a student loan exchange in existing 401(k) plans. The final piece to the provisions is an increase in catch-up contributions for existing 401(k) plans that could further bolster retirement savings.

FINSUM: One of the underappreciated aspects of the Biden administration is the expansion of savings vehicles for retirees across many income earners.

The latest data release from BlackRock’s iShares division revealed troubling news about the state of Bond Market ETFs: inflows slumped to just $14 billion which is the lowest since the onset of the pandemic. It's the taxable corporate bond market that's fairing the worst as investors are pouring less dollars into traditional corporate debt and junk bonds, amid fears of inflation eating yields. Instead, investors are turning to shorter duration and inflation protected bonds. Nearly 40% of fixed income flows went into inflation linked bonds, an almost unprecedented number. Investors have also started to put inflows into Chinese bonds as the international sovereign debt market was a relative winner among bond ETFs. China’s yield is the biggest draw to international investors as they see the debt as relatively secure and paying more than developed countries.

FINSUM: Expect corporate bond outflows to continue until the TIPS spread starts turning towards the Feds 2% inflation objective.

The cloud has been the latest computing craze financial firms have been chasing but it was mobile control that just got the latest expansion in portfolio management software. Enfusion Inc. is a leading provider of cloud based financial software and they are pushing through several new alterations to their mobile platforms. Mobile users will have personalized reports and real-time access to their market exposures. Additionally, they will have a variety of compliance management features including monitoring and overriding exceptions. Finally, a variety of managed services like secure document sharing and profit and loss statements optimized for mobile platforms will be available.

FINSUM: Companies with an advantage in cloud computing will make the quickest transition to mobile products because of the large data they can provide at the snap of their fingers.

The Security and Exchange Commission just issued a slew of new regulatory changes that would impact current trading standards. New changes could come into vote if they have majority support among the five commissioners and two others. Chairman Gensler stated he wants the public and markets to have fair material information. Essentially there is no public disclosure form when a plan to schedule share purchases takes place which can ultimately give insiders an advantage on the trading block. The research in academia has confirmed these trades are more beneficial in the ability to avoid losses inside a 60-day window.

FINSUM: These changes could lead to substantially less stock buyback plans in the coming years as insiders could face more symmetric returns.

Investors need to be more active with their finances and taxes as they enter retirement because it's not the time to coast as many presume. One of the areas retirees underestimate the costs of retirement and permanently puncture their safety net is in healthcare. Hefty premiums hit most Americans due to the Affordable Care Act once you hit 50, and most Americans who retire before Medicare will face a shocking bill. There are lots of healthcare tax credits available for those with low and middle incomes, and bigger benefits if healthcare costs breach 7.5% of adjusted income. Finally, Roth conversation ladders will dramatically impact your healthcare costs.

FINSUM: It’s critical to be informed about all of the tax benefits those approaching or entering retirement can take advantage of pre-Medicare.