Friday Financial Five – June 24, 2016

Friday, June 24, 2016

Dan Forbes, GoLocal Contributor

Markets rally Thursday ahead of Brexit vote

After months of speculation, the vote to determine whether or not the United Kingdom remains in the European Union is complete with the results still outstanding. Financial markets rallied on Thursday, apparently encouraged by the latest polls that showed “remain” with a slight advantage over the “leave” contingent. A major flaw for those wanting to leave the EU is the lack of a clear plan going forward if they win. Results are expected around breakfast time this morning.

BPC details numerous changes for financial security

The Bipartisan Policy Center is comprised of industry leaders focused on shoring up retirement stability for the country. Their 2016 report was released this month, with several possible changes meant to address retirement challenges. One suggestion is to increase Social Security’s maximum taxable base from the current level of $118,500 to $195,000. Another encourages a less expensive method of using home equity to fund retirement, including a reformation of reverse mortgages. High income earners would be affected by the report’s suggested limitation on Social Security benefits and mortgage interest deductions. Intended results include increased overall retirement savings and reduced poverty for the elderly population.

Warren introduces 401(k) “lost and found”

Employment mobility can leave a string of old retirement accounts at former employers. Those without the time or inclination to consolidate accounts can find themselves without a solid way of keeping track of important retirement funds. Senators Elizabeth Warren and Steve Daines have introduced a bill to help in the process of keeping track of those accounts by creating a national online database for workers to quickly find lost accounts. They cite GAO and TIAA reports where tens of millions of employees with neglected accounts would benefit.

2017 Out-of-pocket limits for health plans

There’s sometimes confusion with health plans regarding the difference between the “deductible” and the “out-of -pocket limit”. The deductible represents how much an insured is responsible to pay before the insurance company contributes, sometimes differentiate between “in-network” and “out of network” services. Insureds may still be responsible for expenses once the deductible is met and that’s where the max out-of-pocket becomes important. For 2017, the federal maximum out-of-pocket has increased, up to $7,150 for individuals and $14,300 for families.

More athletes defrauded by advisor

Mark Sanchez and Roy Oswalt are a couple of big name athletes caught up in another example of financial shenanigans. According to the SEC, a Dallas based advisor funneled up to $33 million from clients into an online company whose board the advisor sat on. From those cash infusions to the company, the advisor was paid $2 million. According to sources, Sanchez, approved the use of $100,000 but instead had $7 million of his money placed in this doomed venture.

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: Oregon Business Rankings in US

See how Oregon stacked up against the other states in the U.S.

Prev Next

ThumbTack

Oregon gets a C+ for small business friendliness from Thumbtack, in conjunction with the Kauffman Foundation.

According to the ranking:

Overall friendliness C+

Ease of starting a business B
Ease of hiring D+
Regulations D
Health & safety D
Employment, labor & hiring D
Tax code D+
Licensing C-
Environmental D
Zoning D+
Training & networking programs B+