The purpose of Money Talk is to improve readers' financial capability with research-based personal finance information.
Wednesday, April 3, 2019
Current Personal Finance Events
A recent 18-hour trip (as a passenger) provided an
opportunity to review current personal finance events in detail. Below are some
financial topics that have been recently making headlines:
Savings Legislation- The
federal Retirement Enhancement and Savings Act is under consideration in
Congress and reportedly has widespread bipartisan support. The bill has a
number of provisions to open up savings opportunities for more American workers.
New Jersey recently passed similarly-motivated legislation: The NJ Secure
Choice Savings Act.
Scams- As the 2018 tax
season enters its final two weeks, the IRS is warning taxpayers about
impersonation scams. Fraudsters call, claim to be from the IRS, and request
Social Security numbers or other personal identification information to commit
Investment Advisory Fees-
Standard advisory fees of one percent of assets under management (AUM) are
increasingly being challenged by lower cost services. Competitive investment
advisory firms are charging relatively low annual flat fees or AUM fees as low
as 0.25% to 0.40% of AUM.
The IRS lowered the underwithholding penalty threshold from 90% (and later 85%)
of 2018 taxes owed. This change came in response to concerns about tax
withholding adequacy in the wake of the Tax Cuts and Jobs Act.
Market Performance- On March
29, the last trading day of the first quarter of 2019, the Standard and Poor’s
index had its best first quarter performance since 1998. CNBC referred it as a