This is an overview of Sound Money, Forbes’ free weekly newsletter on the pressing issues that matter to your financial well-being: personal finances, investing, taxes, and retirement. Subscribe to get it delivered to your inbox.
Bitcoin has taken a beating in recent months – losing nearly half of its value after surpassing $ 60,000 in mid-April – but it is on the mend again. As the price hovers around the $ 40,000 mark, some wary investors have jumped on the crypto bandwagon. Thinking heads are pondering the value of bitcoin as a hedge against inflation, or even as a component of your retirement account … although the tax implications require a careful eye.
Read on for Forbes’ learn about the latest personal finance news, from crypto crashes and lumber prices to child tax credits (and more).
Retirement Risk Appetite
Crypto exchange Coinbase has unveiled a new partnership that allows some customers to invest up to 5% of their retirement funds in more than 50 cryptocurrencies, including bitcoin. Does it sound risky? AARP’s senior policy expert thinks so, warning that crypto is “certainly not suitable for retirement investing.Biden’s budget plan includes another concern for some wealthy future retirees: a proposed capital gains tax hike that would be implemented retroactively. (It sounds legal, but whether Congress actually passes it, that’s another question.) Contributor Richard McGahey points out that the pandemic has also amplified economic pressures on vulnerable older workers who cannot afford to take their care. retreat, and suggests the addition of an “Office of Older Workers” to the Ministry of Labor as a possible solution.
Credits for children
Parents, listen: the IRS just published a new FAQ on the newly (and temporarily) expanded child tax credit, plus an online tool to reach eligible parents who do not normally file income tax returns. (Parents can receive a credit of $ 3,000 for each child aged 6 to 17 and $ 3,600 for each child under 6; half of the credit can be paid through monthly cash advances from July 15.) Contributor Guinevere Moore explains how to avoid 10 Common Tax Mistakes When Reporting (or Not Reporting) Cryptocurrency Transactions to the IRS.
New Chart: Portfolio Warning – Is Inflation Really Returning Or Is It Just Visiting?
Billionaires in love with Bitcoin
Bitcoin price looks like a dizzying theme park ride, but hedge fund billionaire Paul Tudor Jones says cryptocurrency is a “reliable” inflation hedge and âa way to invest in certaintyâ. Sports betting presents another very risky investment opportunity, but the DraftKings founders see path to profitability if more states legalize their affairs. Just don’t buy iron-titaniumâMark Cuban-backed cryptocurrency crashed to zero Tuesday, signaling upcoming volatility for competing tokens.
The so-discussed flight the price of wood has fallen by more than 40% since its peak in May, indicating that the economy – well, commodities, at least – could return to the status quo. Nonetheless, the widespread rise in prices continues to sound the alarm bells for inflation pessimists. To their chagrin, the Fed has just indicated that it will not raise interest rates until the end of 2023. here are some possible reasons for the wait. Although 26 states (and more) have already announced their intention to remove the federal unemployment supplement of $ 300, Goldman Sachs predicts that the workforce squeeze will continue mostly until benefits expire in each state in early September.
The current moratorium on student loan repayments is due to expire on September 30. There is a silver lining that the date will be extended, but borrowers should still be prepared to start paying again in October. Vaccinated and want to come back to the world? Sorry to say you’re not alone, almost nine in 10 Americans plan to travel in the next six months, and Forbes Advisor shares tips for planning a vacation and hopefully outsmarting the masses.