Friday Financial Five—May 10th, 2013
Friday, May 10, 2013
Internet tax passes the Senate
The movement to put internet companies and traditional retailers on “equal footing” took a big leap forward on Monday, when the Senate overwhelmingly voted to approve an internet tax bill.Currently, internet companies only need to collect sales tax where they have a physical presence. Online giant, EBay, is leading the fight against the bill, which is expected to have a tougher time getting passed in the House. Anyone that’s ever tested an item in the store only to rush home and buy it online probably concedes that the internet tax is fair, but it’s a tax nonetheless.
Private equity in the 401(k)
Private equity funds have been a staple of large pension plans for some time, but when it comes to individuals, they’ve been limited to accredited investors. An accredited investor is generally defined by higher net worth and income requirements. The SEC contends that this investor is able to sustain the perceived higher risk and expense that comes with investing in private equity. There are a number of groups, such as the Carlyle Group and Blackrock, motivated by the multi-trillion dollar 401(k) industry hoping to bypass this accredited requirement. Therefore, it’s possible that employees both public and private could soon have exposure to these complicated investments in their retirement plans.
Are you paying the Medicare surcharge?
The Affordable Care Act in 2010 contained expanded provisions for Medicare Part B and Part D premiums. Higher income enrollees are meant to pay a higher premium to fund the program, and the Act froze the 2010 income level for years 2011 through 2019. As a quick example, an individual filer with a Modified Adjusted Gross Income of $107,000 will pay the standard premium. However, earning just one extra dollar raises the enrollee’s yearly Medicare premium by almost $1,000 because of Part B and Part D surcharges. You can review Medicare costs here and determine where your expense will fall.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe “Sandwich Generation”
Mother’s Day weekend seems an appropriate time to address a growing financial concern. Moms and dads are taking on their children’s college expenses while also caring for elder parents. This is known as the “Sandwich Generation”. There’s ballooning college debt and high college graduate unemployment, a nasty combination where graduates can’t pay back loans because they’re not getting paid. The Sandwich Generation must always remain mindful of retirement goals. There has to be focus on careful budgeting, monthly savings, and realistic college expenses.
Mind your FICO score
FICO and Experian reached agreement to continue providing credit scores to our country’s banking community. This score is many times the life blood of your borrowing experience, so it’s essential that you keep sparkling credit for as long as possible. FICO did not promise to keep your credit details completely accurate, so be sure to review it once a year. They also reserve the right to haphazardly combine your information with a family member or complete stranger of the same name.
Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected].
Related Articles
- Friday Financial Five—May 3rd, 2013
- Friday Financial Five – March 1st, 2013
- Friday Financial Five—April 26th, 2013
- Friday Financial Five—April 19th, 2013
- Friday Financial Five—April 12th, 2013
- Friday Financial Five—April 5th, 2013
- Friday Financial Five – March 22th, 2013
- Friday Financial Five – March 15th, 2013
- Friday Financial Five – March 8th, 2013
