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Independence Day fireworks may have passed, but the stock market has been putting on quite a display for investors. The week started out with a bang, as big tech stocks like Amazon and Apple launched the S&P and Nasdaq to new heights on Wednesday—only for major indices to crash down the next morning to their lowest level in July. Find out what it means for your wallet, plus the latest in retirement planning, tax traps and more.
The Dow fell 500 points Thursday morning amid heightened worries that rapidly-spreading variants (and specifically the Delta variant) could once again force shut downs and slow economic recovery. Robinhood has filed its IPO prospectus, revealing that the fintech’s founders could be sitting on multibillion-dollar fortunes if things go well. For valuation-weary investors, the Fed’s latest minutes further illuminate what transitory inflation might look like and the potential market impacts.
Dodge The Double Tax Trap
Take a deep dive into the two most family-friendly provisions of the last stimulus package: the expanded child tax credit and the child and dependent care credit. For some parents, opting out of the monthly child tax credit payments might actually be a wise financial decision. And before you make after-tax contributions to a traditional IRA, understand the rules to avoid the double tax trap on withdrawals.
The Great Reframing
If you’re already retired and sitting on a taxable brokerage account and a tax-deferred IRA, here’s a handy calculator to help you determine what to cash in first. As senior living facilities and home care agencies face a severe staffing shortage, here’s what can be done to recruit and retain these critical workers as the pandemic eases. In a terrific article, senior contributor Joseph Coughlin argues that we are undergoing a “great reframing” of life’s choices and behaviors, redefining how we view work, retirement, relationships and everything else.
Novel graphic: Delta Blues- Despite the strong economic recovery the pandemic persists.
Two lawyers in Ohio are suing to compel their governor to restore the federal $300-a-week unemployment benefit enhancement, following temporary injunctions issued after similar lawsuits were filed in Indiana and Maryland. Though the unemployment rate ticked up slightly in June, the U.S. also added 850,000 new jobs, exceeding analysts’ expectations.
Millennial Money Mistakes
Congress is considering a few new bills that could dramatically overhaul credit reporting for private student loan borrowers and other consumers. Last week, the White House shared changes to a notoriously mismanaged grant program for teachers. Plus, a financial planner offers advice on three common money mistakes that Millenials often make.