Friday Financial Five - September 5, 2014
Friday, September 05, 2014
CBO’s 10 year projection
The Congressional Budget office has released an updated Budget and Economic Outlook for the next decade. According to their numbers, the 2014 deficit is anticipated to drop to roughly $500 billion. However, federal debt will reach 74 percent of GDP by the end of fiscal year, inching closer to the 90 percent benchmark that economists fear. Federal deficits have fallen in recent years, but the CBO expects spending to outpace revenues over the next decade leading to a higher debt. These projections assume growth and inflation remain below historical norms and don’t incorporate the possibility of a recession.
States attractive to retirees
Wallethub has compiled this year’s best and worst places to retire, and their numbers show the senior population is shunned in the northeast. Boston ranked 136th, Worcester comes in 144th, and last place (150th out of 150 cities) is occupied by Providence. The cities were rated on affordability, jobs, activities, quality of life, and health care. The first place winner is Tampa, as Florida occupied half of the top ten locations.
Parents report college costs hindering retirement
More evidence has emerged that parents are getting wary when it comes to paying for college. Citizens Financial Group conducted a survey, with 94 percent saying they feel increased burden from their kids’ college debts. There may have been a mentality over the last few decades where families had fewer children due to the perceived financial ramifications. Prioritizing retirement and properly treating college as the investment it is may allow those who want more children to do so. In cases where retirement is jeopardized, there would simply be less money allotted for college expenses.
2014 tax preparation will need to account for healthcare
There are plenty of people out there itching to get a handle on their 2014 tax liability. With that in mind, the IRS has released the 1040 draft and other draft forms. Changes in the 1040 to comply with the Affordable Care Act are already causing a stir among accounting groups, and it may get slightly more complicated for individuals to easily complete their own return. Those individuals that do complete their own return and expect a subsidy may not be able to streamline the 1040EZ.
Changes coming to money market funds
There’s still plenty of time, but investors should be aware of the new rules regarding money markets. Starting in the second half of 2016, the SEC ruled that these funds would be separated into two groups. The first group will be retail money funds, which will continue to be valued at the fixed dollar per share. The second group will be institutional prime funds that will have a net-asset value (NAV). In theory, these funds can be valued at more or less than a dollar at the close of trading. Keep that on the radar to avoid any surprise when a money market fund “breaks the buck”.
Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected].
Related Slideshow: Massachusetts Business Rankings
See how Massachusetts stacked up.
Related Articles
- Friday Financial Five—April 11th, 2014
- Friday Financial Five – April 4th, 2014
- Friday Financial Five – April 18th, 2014
- Friday Financial Five – March 14th, 2014
- Friday Financial Five, May 30, 2014
- Friday Financial Five – June 13th, 2014
- Friday Financial Five – June 20th, 2014
- Friday Financial Five – June 27, 2014
- Friday Financial Five – May 16th, 2014
- Friday Financial Five – May 23rd, 2014
- Friday Financial Five – August 8th, 2014
- Friday Financial Five – August 1st, 2014
- Friday Financial Five - August 15th, 2014
- Friday Financial Five - August 22, 2014
- Friday Financial Five - August 29, 2014
- Friday Financial Five – July 18th, 2014
- Friday Financial Five – July 4th, 2014
- Friday Financial Five – April 25th, 2014
- Friday Financial Five – May 9th, 2014
- Friday Financial Five – March 28th, 2014
- Friday Financial Five – March 21st, 2014
- Friday Financial Five – February 21st, 2014
- Friday Financial Five – February 28th, 2014
- Friday Financial Five – March 7th, 2014
Follow us on Pinterest Google + Facebook Twitter See It Read It