Friday Financial Five – November 13th, 2015

Friday, November 13, 2015

Daniel P. Forbes GoLocalProv MINDSETTER™

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Gundlach still opposes a rate hike

Doubleline Capital’s Jeff Gundlach, considered by many to have assumed Bill Gross’ mantle as the leader in fixed income investment, doesn’t believe in a December rate hike. Aside from assessing that most bond managers aren’t ready for rise in rates, he made several other points against the Fed taking action. There is the absence of meaningful inflation, especially with the continuation of low oil prices. While the European Union continues economic stimulus, the U.S. would be cutting rates, a drastic disconnect between two regions with similar growth. Most important to Gundlach is the drop in the junk bond index, which is at four-year low.

Lew advocates for myRA

Jacob Lew, the Treasury Secretary, released a statement this week promoting the use of myRA as the “stepping stone” to greater savings. Workers may not have experience or options in terms of saving for retirement and some aren’t comfortable with investment markets they don’t understand. myRA provides a beginner’s experience for tax deferred savings for those that don’t have a retirement plan at work. As Lew points out, it’s a simple and safe way to begin the process of saving for retirement. It’s no longer feasible to think of Social Security as the sole source of retirement income.

House pushing a replacement fiduciary bill

Raising fiduciary responsibility for retirement account advisers remains a priority and the House of Representatives is working on a bill separate from the Department of Labor’s. While the House bill also requires advisers to work in the client’s best interest and disclose compensation and fees, it’s an effort to reduce the DOL bill’s negative consequences on low and middle income families. The fight will continue between those that want complete fiduciary responsibility and an industry that simply wants full disclosure.

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Short window to file and suspend

‘File and suspend’ is the strategy for taking Social Security benefits where a higher earning spouse would file for benefits at full retirement age (FRA) and then suspend benefits to accrue retirement credits. The lower earning spouse subsequently claimed spousal benefits. This option is going away effective April 30, 2016 but remains an option to consider until then. Single people who are or will turn 66 within six months of November 2nd can also file and suspend at any point within that timeframe, once reaching full retirement age. This allows the banking of those benefits while earning roughly 8 percent annually until age 70, along with the option to request suspended benefits in a lump sum.

Fantasy sports companies on the ropes

Daily fantasy sports companies are in the New York Attorney General’s crosshairs, with Draftkings and FanDuel receiving a cease-and-desist order to halt operations in the state. Furthermore, Marketwatch reports major financial institutions may wash their hands of the companies altogether. Citigroup, Wells Fargo, Visa, PayPal and MasterCard are all reviewing the ramifications of processing financial transactions that may be deemed illegal.

Dan Forbes, a CFP Board Ambassador, is a regular contributor on financial issues. He leads the firm Forbes Financial Planning, Inc in East Greenwich, RI and can be reached at [email protected].

Related Slideshow: Top 50 Business Delinquent Taxpayers

Below are the top 50 delinquent business taxpayers in the state, ordered from least to greatest. Data was obtained directly from the state Division of Taxation and is based on an official statutorily mandated list of tax delinquents that must be published. Applicable taxes include sales, meals, beverage, withholding, corporate, and health care taxes. Total amounts are current as of this past January. Delinquent payers who have made payments since January have been removed from the list. This listing of businesses is current as of June 28. For each business the official business address is listed, which may in some instances be different than the public business location. When available, more information is provided about the business or circumstances potentially relevant to its delinquency.

Friday Financial Five – November 13th, 2015

View Larger + Gundlach still opposes a rate hike

Lew advocates for myRA

House pushing a replacement fiduciary bill

Short window to file and suspend

Fantasy sports companies on the ropes

Related Slideshow: Top 50 Business Delinquent Taxpayers

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Gundlach still opposes a rate hike