Here’s our FJY Take on the latest news from the past week, where we cover what’s happening in the industry and why it matters to you.
Happy Financial News: More 401(k) Accounts for Thousands of Americans!
Things are looking up for those who do not currently have a 401(k) and work for a small business. It’s also great news for smaller businesses that want to implement the benefit for employees, but couldn’t before (hello, recruiting incentive!). The House of Representatives Ways & Means Committee has just approved a package bill that will allow smaller companies to offer the 401(k) via a consolidation plan. The new legislation would see some 700,000 Americans to save well into retirement age. So, why is congress addressing this now?
Going Against the Grain: Preparing Your Beneficiaries for Your Passing
We’ve all heard the story before: A relative passes and family members end up surprised at what the deceased’s wishes were. One person didn’t get what he/she expected and is now mad at the others. Emotions are high, words may be exchanged and all of a sudden, there’s a sad crack of the familial divide. Research has revealed that many estates have lost family harmony and assets after a transition. There’s a strong case for breaking the taboo around death and inheritance. From both a keeping the peace and financial planning perspective, many times, it might be better to make your wishes known ahead of time. Here’s some great advice about preparing heirs for this difficult period.
How Are Presidents Obama and Trump Helping New C-Corporations?
Although not as popular as other business entities, the C-corporations still offer advantages to startups. Many startups are embracing a C-corp. structure in the hopes of a tax savings courtesy of Trump, but also Section 1202 of the PATH Act of 2015 —which was signed into law by Obama. Until recently, this only made sense to large, publicly traded organizations. Discover the latest details of startups who’re embracing the C-corp.
The Retirement Crisis For Americans Has Been Brewing For Awhile
A new survey has revealed that many Americans are under-saved for their golden years. Less than a third of Baby Boomers, Gen X, and Millennials have managed to save at least 11% or more. Only 14% surveyed actually knew how much they could contribute to their 401(k)s. One problem is the fact that corporations don’t always match their employees’ contributions. However, another major problem is caused by a lack of financial education. Read on to find out why Natixis investment managers feel that Americans are operating on wrong assumptions.