Individual Wealth – Free Bassuk.com http://freebassuk.com/ Sun, 19 Sep 2021 02:45:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://freebassuk.com/wp-content/uploads/2021/07/icon.png Individual Wealth – Free Bassuk.com http://freebassuk.com/ 32 32 Proposed tax changes focus on the rich http://freebassuk.com/proposed-tax-changes-focus-on-the-rich/ http://freebassuk.com/proposed-tax-changes-focus-on-the-rich/#respond Sat, 18 Sep 2021 13:08:00 +0000 http://freebassuk.com/proposed-tax-changes-focus-on-the-rich/ So how do you define who is rich? The last tax changes proposed by the House Ways and Means Committee basically say that a wealthy individual is someone who earns $ 400,000 a year or a couple with an annual income of $ 450,000. “Rich is just the term we use to describe people who […]]]>

So how do you define who is rich?

The last tax changes proposed by the House Ways and Means Committee basically say that a wealthy individual is someone who earns $ 400,000 a year or a couple with an annual income of $ 450,000.

“Rich is just the term we use to describe people who have more than us when we think they don’t deserve it,” said Brad Klontz, financial psychologist in Boulder, Colorado. “The definition of rich is entirely subjective,” adding that “$ 400,000 is just an arbitrary number – it could make you ‘rich’ in Central America but middle class on the shores. “

Four years ago, when the latest Internal Revenue Code changes were made, the focus was on a lower tax rate for corporations and for very wealthy individuals, especially those who owned property. real estate and could benefit from a very specific tax deferral strategy. on the property.

This time around, companies won’t pay much higher taxes, at least not as high as some progressives wanted. Instead, the tax law focuses on increasing the incomes of the rich.

“All of this legislation is people-centered and raises the ante for the rich,” said Michael Kosnitzky, partner at Pillsbury Winthrop Shaw Pittman law firm. “Raising the corporate tax rate does not benefit the rich because corporate taxes are paid by shareholders, who receive less dividends, employees who receive less wages, and the consumer, who pays more for goods and services. These proposals fall under personal income tax.

The proposed top tax rate of 39.6% is similar to the old top rate of 39.6% in 2017. It is set at $ 400,000 in income for an individual and $ 450,000 for a couple. which is slightly lower than income level in 2017. Currently the highest tax bracket, To 37 percent, starts at $ 523,600 for an individual and $ 628,300 for a couple.

But those affected by the new rate would also pay more because there are fewer deductions than there were in the tax code before the 2017 changes.

“You have to look at the effective rate,” said Pam Lucina, director of trust and head of trust and advisory services at financial services firm Northern Trust. “We have a lot less deductions, so the 39.6% rate is a much higher rate. “

One that affected many people was the loss of the Full State and Local Tax Deduction, or SALT. In the 2017 changes, the deduction was capped at $ 10,000 and primarily affected people who lived in Democratic-controlled states of the Northeast and West Coast, where property taxes and state property taxes are high.

Limiting it brought more money to the US Treasury. In 2017, the cost of the unlimited deduction the federal government approximately $ 122.5 billion; the cap reduced that number to $ 24.4 billion the following year.

Details of the tax proposal are still being negotiated, and lawmakers representing affected states have said they hope they can reinstate more of the SALT deduction. A proposal would double the deduction to $ 20,000, not a wholesale return to what it had been.

The tax that defined this year’s discussion was capital gains. The proposed legislation – raising the rate to 25%, from 20%, for people earning over $ 400,000 – has been a relief for two groups of taxpayers: the very rich and anyone who could inherit property.

The Biden administration began the year by talking about raising the capital gains rate to the ordinary income tax rate for high earners and rejecting a provision that allows people to inherit property without gains in capital.

The administration’s initial proposal called for a maximum capital gain rate of 43.4% – the highest tax rate plus the 3.8% surtax on investment income that pays for Obamacare – for individuals earning over a million dollars. But most of the attention has been drawn to President Biden’s proposal to end the so-called base increase on death – which wipes out all taxable gains on assets passed on to heirs. repeal that reportedly brought in $ 11 billion in additional tax revenue per year.

This proposal has since been abandoned.

“No loss from the base increase is a big win for wealthy families,” said Edward Renn, partner in the Private Clients and Taxation group at the law firm Withersworldwide.

But this change was not made to save wealthy families. This was done because the change could harm smaller families who had property to pass on to their children.

“The provision benefits very wealthy people who have started businesses,” said Justin Miller, national director of wealth planning at Evercore Wealth Management. “But it also benefits anyone who inherits a home from their parents and grandparents that might have hundreds of thousands of dollars that might be subject to capital gains tax. It would have impacted a lot of people, not just the top 1% or top 0.1%. It would not have been a popular strategy.

Taxes affecting estates and large gifts have long been ripe for tax changes. A change would bring the inheritance tax exemption back to its level under the Obama administration. But it probably won’t increase the incomes of megamillionaires and billionaires. While the proposed exemption would drop to around $ 6 million per person from $ 11.7 million, the estate tax rate would remain at 40%. This is what matters for the larger estates.

“If we want to prevent dynasties, the most important thing is the highest tax rate,” said Harland Levinson, a chartered accountant in Beverly Hills, California. “The amount of the exemption is important but not really important. It is the maximum tax rate that affects the largest estates.

A host of other proposals, however, seek to clamp down on areas that have allowed the wealthiest and most sophisticated Americans to pass substantial wealth on to their heirs tax-free. One is to shut off access to various types of grantor trusts which provide huge wealth transfer opportunities for the very wealthy.

A popular type allows someone to put an asset, like shares of a private company about to go public, in a short-term assignee trust and pass all the appreciation on to a franchise heir. tax. Or a person could use another type of transferor trust to pay all of the taxes on the investment in the trust, allowing that investment to grow tax free.

“Grantor trusts have been the bread and butter of estate planning,” Miller said. “This proposal threatens to eliminate grantor trusts on the date the bill is passed.”

The tax proposals also target loopholes that have favored higher incomes in certain industries, such as one that would eliminate the preferential tax treatment on deferred interest, which is used by high incomes in the private equity world.

Another proposal aims to reduce the preferential treatment of shares that start-up founders and first-time employees receive, known as the share limitation of qualified small businesses.

As it is, the first $ 10 million of those shares when the company goes public may be exempt from tax. The proposal would reduce that amount from $ 10 million to $ 5 million.

This would help reduce the impact when people find ways to take the deduction multiple times.

“The founders were using the provision to bring equity into trusts and then stack those $ 10 million exclusions on top of each other,” Tara Thompson Popernik, research director for the wealth strategies group at Bernstein Private Wealth Management. “They could fund multiple trusts. There was an almost unlimited amount that could be excluded. Fifty percent is still a pretty huge advantage.

And for anyone who misses, there is an additional 3% tax for people earning more than $ 5 million a year, and a cap on individual retirement accounts set at $ 10 million (which was in effect. response to a ProPublica article which revealed that Silicon Valley investor Peter Thiel had a tax-free retirement account worth $ 5 billion.)

Any discussion of taxes revolves around paying your fair share, but fairness is in the eye of the person being taxed. But Mr Klontz, the financial psychologist, said his research has shown that most people think taxes are right when someone else pays them.

“At the end of the day, we all want to feel it’s fair, but no one wants to be taxed more,” he said. “If you think the rich are greedy and selfish, you may feel justified in taking more away from them. But in this political climate, there is a good chance that all these tax changes will be reversed in the next election.


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A boom so unstoppable it comes with a free pizza http://freebassuk.com/a-boom-so-unstoppable-it-comes-with-a-free-pizza/ http://freebassuk.com/a-boom-so-unstoppable-it-comes-with-a-free-pizza/#respond Sat, 18 Sep 2021 11:40:10 +0000 http://freebassuk.com/a-boom-so-unstoppable-it-comes-with-a-free-pizza/ The Week-end edition is taken from the daily Collection by Stansberry. In a tight and competitive market, a little push or attention can go a long way … Real wealth real estate Editors Steve Sjuggerud and Vic Lederman have written a lot recently about the boiling real estate market … and why they think it […]]]>

The Week-end edition is taken from the daily Collection by Stansberry.


In a tight and competitive market, a little push or attention can go a long way …

Real wealth real estate Editors Steve Sjuggerud and Vic Lederman have written a lot recently about the boiling real estate market … and why they think it won’t end anytime soon …

With that in mind, we couldn’t help but laugh (and share) more evidence on the current state of the housing market.

Here’s the deal … Buy this house in Franklin Square on Long Island New York, and you’ll get free pizza. (As anyone who comes or has been to Long Island knows, pizza and bagels are probably the two most sought-after foods.)

You’ve probably heard of similar incentives like this in home buying and selling negotiations over the past year or so. This one is silly, but to me it makes an iconic – and surprisingly serious – point about the housing market today.

You might think that the real estate boom can’t continue … But I’m here to tell you that it can – and go.

And in today’s essay, I’m going to share how you can take advantage of it.

There is much of the demographic truth that is helping fuel the real estate boom today …

Millennials – those between the ages of 25 and 40 – are now the largest generation in America … and they’re just starting to buy homes. They need a place to live (besides their parents’ basements) and raise their families.

The pandemic accelerated the home buying trend that was already underway. Interest rates hit historic lows … mortgages became cheaper than millennials had ever known … the new ‘work from home’ environment meant people could leave the office and leave the office. cities … and those who could afford it therefore bought houses.

The big picture is that the demand is high. In the words of Steve and Vic, what we see in the housing industry is a classic situation in Economy 101.

Home prices are rising … And the companies doing business in this industry will experience tremendous growth.

From an investment standpoint, this can be great long-term investments in one of the largest parts of the US economy.

As I have said several times over the past year, with the printing of money at record levels and the debt scoreboard on the rise, this does not surprise us.

Anything that can be nailed to the ground (like houses) or found in the ground (like goods) should increase in relative value measured in dollars. In other words, the value of hard and wanted assets will increase in times of inflation.

Add in simple demographic trends and supply and demand, and you’ve got the kind of fundamental evidence that isn’t easy to find.

But while this boom has more room to run, this opportunity won’t last forever either …

As Steve wrote in a special report to Real wealth real estate subscribers at the beginning of the month …

Folks, the real estate market is hot right now. It’s time to act now … before the crowds realize the hike isn’t over yet.

It might start to happen (sort of). Earlier this week, on the front page of the mainstream financial news website CNBC.com, that photo and headline was …

CNBC also went on to describe our idea of ​​how millennials are driving this trend …

The U.S. Census found that 12.3 million U.S. households formed from January 2012 to June 2021, but only 7 million new single-family homes were built during that time …

“The pandemic has certainly exacerbated the housing shortage in the United States, but data shows that household formations outpaced new construction long before COVID. Simply put, the supply of new construction has not responded to the demand. demand over the past five years, ”said Danielle Hale, chief economist for Realtor.com. . “Millennials, many of whom are now in their 30s and even 40s, have demystified the expectations of the industry’s ‘tenant generation’.”

But our main takeaway is different …

Numbers aside, the CNBC article noted that “manufacturers can’t tell the difference” because of the current supply chain issues today. Construction of single-family homes is actually at the slowest pace since 1995.

The article suggested that this was the reason why homebuilder stocks were “trading considerably lower” over the past week.

It may be true. But here’s why we like to approach investing as individuals rather than as a Wall Street company married to quarterly results …

If you can afford to look past the short-term concerns (which we can do as individual investors), and if you have the patience and the time to think long-term, it’s easy to see the investment opportunity that others miss …

People who can afford a new home today want to buy a new home today. The problem is, there aren’t enough of them.

It’s that simple.

And that’s a recipe for higher house prices and higher profits for the companies building them or for the “pick and shovel” companies that provide construction equipment and tools that help those companies build houses.

Despite what many people might think, this trend is not over … and we are far enough from its end that there is real value in putting this knowledge into practice now.

It will take years for the imbalance between supply and demand to be reduced. And other opportunities will present themselves until that happens.

If you are looking to anticipate the real estate market, be aware that house prices are likely to go up from here.

And if you want to invest some fresh money in this area today, Steve and Vic say it’s a great move.

All my wishes,

Corey mclaughlin

Editor’s Note: In his latest free presentation, Steve delves into the “whys” behind the current real estate boom and reveals his “Big Call # 1 of the 2020s”. He also explains why real estate investing isn’t just about buying physical properties … and why this “fad” isn’t a fad at all. You don’t want to miss what Steve sees coming for the boiling housing industry. Click here for more details.


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Aiming to Drive Fee-for-Service Models, AdvicePay Optimizes Workflows http://freebassuk.com/aiming-to-drive-fee-for-service-models-advicepay-optimizes-workflows/ http://freebassuk.com/aiming-to-drive-fee-for-service-models-advicepay-optimizes-workflows/#respond Fri, 17 Sep 2021 19:07:33 +0000 http://freebassuk.com/aiming-to-drive-fee-for-service-models-advicepay-optimizes-workflows/ The AdvicePay paid payment platform is improving its workflow support for corporate customers in a move that continues to blur the lines between payment provider and compliance support. The cash-flow-positive startup (according to founders Alan Moore and Michael Kitces), adds a “Commitments” feature to its business platform, according to a press release and preview offered […]]]>

The AdvicePay paid payment platform is improving its workflow support for corporate customers in a move that continues to blur the lines between payment provider and compliance support.

The cash-flow-positive startup (according to founders Alan Moore and Michael Kitces), adds a “Commitments” feature to its business platform, according to a press release and preview offered at WealthManagement.com. The feature is designed to make it easier to standardize custom workflows across businesses, as they track deliverables and provide support to advisors who offer fee-for-service offerings, such as financial planning.

The new Commitments feature allows companies to add document templates, such as financial planning agreements, and configure workflows so that advisors using the service can automate their invoicing. For their part, home offices can ensure that services billed by advisers are services provided. For example, by tracking the deliverables provided to clients, or indicating that a necessary client signature has been obtained by the advisor and, in turn, compensation owned by the head office is remitted to an advisor.

One of the new features of Commitments on AdvicePay.

Businesses can customize workflows to reflect their own billing practices, automating when an advisor receives compensation for services rendered.

As simple as standardizing workflows may seem, the features that AdvicePay offers often replace time-consuming manual processes, such as filling out dreaded spreadsheets, Kitces said. As one-time or recurring charges gain popularity among business advisers, these organizations have seen an increase in the need to adapt their workflows. Engagements is designed to meet these demands for the 62 companies and more than 4,500 advisors who now use the service. Early adopters of the new functionality include Cetera Financial Group, Financial Services Network and Thrivent Advisor Network. Cetera is AdvicePay’s first corporate customer.

In fact, AdvicePay has seen the sometimes unenthusiastic reception of past fee-for-service offers evolve into something more positive among some large companies, Kitces said.

“Historically, businesses have been a barrier to fee-for-service planning for consumers; not because of anything negative about financial planning, but simply because they couldn’t expand it enough to be profitable for the business. They tended to prevent their advisors from doing in-depth financial planning and trying to steer them to other solutions available off the broker’s product shelf, ”he said. “This deployment is primarily aimed at solving the problems encountered by companies. “

“We are seeing companies making big changes,” he added, supported by the technology solutions offered by AdvicePay.

advicepay-automation.png

AdvicePay’s invoicing automation feature.

Now that AdvicePay is making workflows easier, it also collects data on fees charged, how they’re billed, and how companies handle fee-for-service offers. AdvicePay is starting to turn that data into advice opportunities, helping companies new to fee-for-service transactions better launch an offer, Kitces explained. “It’s just about helping to train and teach [enterprises]. “

In addition to establishing best practices for firm-level fee-for-service offerings, AdvicePay is able to leverage the data to provide advisors with better insight into how their peers are performing. Advisors who give fee-for-service advice, like financial planning, tend to be “some of the best advisers in the firm,” Kitces said. Companies want to train more of their advisors to replicate the success of these “planning-centric” advisers.

“We’re now getting more requests from companies to work with them – not just consulting with headquarters on how to deploy and scale this – but actually doing consultant level training,” he said. AdvicePay can provide “hard data” on the average fees charged by company advisers and compare them to other factors, such as customer retention.

By the end of the year, AdvicePay plans to release some of this anonymized data to the public, highlighting how fee-for-service has changed the wealth management industry, Kitces concluded. What started as a tool for individual advisors to automate billing and payment processing for hourly, subscription and compensation models has evolved as businesses have turned more and more to planning. fee-for-service to supplement the traditional services offered by their advisers.


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New York City funds college plans to close the wealth gap http://freebassuk.com/new-york-city-funds-college-plans-to-close-the-wealth-gap/ http://freebassuk.com/new-york-city-funds-college-plans-to-close-the-wealth-gap/#respond Fri, 17 Sep 2021 10:00:01 +0000 http://freebassuk.com/new-york-city-funds-college-plans-to-close-the-wealth-gap/ Rukiya Zaman, 7, received $ 100 in a 529 scholarship savings plan as part of a New York City pilot program to close the wealth gap. Her parents have since started saving on their own. CNBC Seven-year-old Rukiya Zaman dreams of becoming a NASA astronaut. The second-grader, who was born in Bangladesh, is already saving […]]]>

Rukiya Zaman, 7, received $ 100 in a 529 scholarship savings plan as part of a New York City pilot program to close the wealth gap. Her parents have since started saving on their own.

CNBC

Seven-year-old Rukiya Zaman dreams of becoming a NASA astronaut.

The second-grader, who was born in Bangladesh, is already saving to meet this goal, thanks to a program in her New York school district.

The initiative, led by a non-profit organization NYC Kids Rise, began giving every kindergarten child in the district $ 100 into a 529 college savings account in 2017. The plans are a tax-efficient way to save for college or other schooling. Qualifying earnings and withdrawals are exempt from federal tax and often also from state levies.

“The first time I decided to go to space? Because I saw some pretty planets and wanted to touch them,” Zaman said.

The program was piloted in Zaman district mainly because it is one of the most diverse in the city. More than half of the students are Hispanic, 23% are Asian, 16% are white, and 7% are black. About 20% of the students in the district are English language learners.

Now, starting this fall, every kindergarten student at New York Public School will receive $ 100 into a 529 account.

“For New York to come back stronger than before the pandemic, we must close the growing wealth gap that is preventing so many children from having opportunities,” New York Mayor Bill de Blasio said at the meeting. ‘an event on Thursday launching the expanded program.

The city has committed $ 15 million annually through 2025 to the initiative, in addition to the nonprofit’s $ 15 million in funding. Gray Foundation. In addition to the initial deposit of $ 100, students have the opportunity to earn an additional $ 200 in rewards.

Students at New York’s PS 148, pictured in January 2020, were among those involved in a pilot program that gave a kindergarten student $ 100 as part of a $ 529 college savings plan. imitation is now city wide.

They get the accounts regardless of immigration status. This is because NYC Kids Rise owns the Global Account that houses the individual student accounts, so Social Security numbers are not required.

Admittedly, New York is not the first city to give money to students for college savings accounts.

San Francisco was the first. In 2011, he began automatically opening a $ 50 account for every child entering kindergarten in the public school system. Boston and Los Angeles are among the cities that also have programs, which include additional fundraisers and balancing rewards.

In New York, the pilot program has already had success in community fundraising. For example, a public housing complex in the neighborhood raised enough to give all kindergarten, first, second and third degree tenants $ 1,000 for their accounts.

I don’t want to buy a house. I want [an] my child’s education.

Rahimuzzaman Sumon

Father of 7-year-old Rukiya Zaman

Another big part of the initiative is financial education for families. The hope is that parents will be inspired to start saving in their own 529 plan.

Rukiya Zaman’s father, Rahimuzzaman Sumon, is among those who have opened an account. When he arrived in the United States in 2009, he only had $ 700 in his pocket. Now he is working hard to help his daughter achieve her goals, whatever they are.

“I can do anything for my child. I don’t want to buy a house,” he said. “I want [an] my child’s education. “

Watching the money grow in scholarship accounts can be empowering for parents, said Murray Abeles, chief administrative and financial officer at NYC Kids Rise.

“The idea that you actually have assets there, before you even thought it was a possibility, is important,” Abeles said. “It becomes this kind of notion, ‘I can do this.'”

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He understands the importance of this access for the immigrant community. Abeles, whose mother is Colombian, is a district alumnus who piloted the program. He remembers when he was growing up his mother saved money by hiding dollars in a jar.

“She had no information on financial vehicles or other means of savings that could have helped her along the way,” he said.

NYC Kids Rise estimates that all in all, with additional community scholarships, family savings, and income on investments through grade 12, families will have saved $ 3,500 for education costs.


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Galvin orders MassMutual to pay $ 4 million for social media policies http://freebassuk.com/galvin-orders-massmutual-to-pay-4-million-for-social-media-policies/ http://freebassuk.com/galvin-orders-massmutual-to-pay-4-million-for-social-media-policies/#respond Thu, 16 Sep 2021 19:29:56 +0000 http://freebassuk.com/galvin-orders-massmutual-to-pay-4-million-for-social-media-policies/ MassMutual’s subsidiary MML Investors Services will pay the state of Massachusetts $ 4 million in fine, the office of Commonwealth Secretary William Galvin arguing that the company has improperly supervised the use of social media by its agents, including Keith Gill, a former registered representative whose social media posts have become a focal point of […]]]>

MassMutual’s subsidiary MML Investors Services will pay the state of Massachusetts $ 4 million in fine, the office of Commonwealth Secretary William Galvin arguing that the company has improperly supervised the use of social media by its agents, including Keith Gill, a former registered representative whose social media posts have become a focal point of the GameStop saga. Gill is known for his Reddit nicknames “DeepF —— Value” and “Roaring Kitty” on YouTube.

The consent orders were signed this week, with Galvin claiming that MassMutual had agreed to “undergo an independent compliance review” of its social media policies and business practices for brokers / dealers, and will also be subject to an independent compliance review. a three-year compliance audit. According to Galvin, poor oversight of the company’s social media has consistently failed to identify Gill’s identity.

“It is clear that MassMutual has not been as diligent as it should have been in supervising its employees,” Galvin said in a statement. “It took the media less than a day to identify the person behind Roaring Kitty’s posts, when his own employer ignored his online personality.”

According to the consent order, Gill worked as an agent for MassMutual between April 2019 and January this year, during which time he posted hundreds of times on social media. As of August 2019, Gill began posting articles on GameStop and other titles on the “WallStreetBets”Subreddit, and started posting videos and live broadcasts on investing in GameStop titles on YouTube in July 2020.

“Although he never mentioned his name or affiliation with (MML Investors Services), Gill’s face was central to his YouTube videos,” the order says. “Gill has posted at least 80 videos containing over 250 hours, or over 10 days, of content, all of which he streamed live and posted while registered with (MML).”

Gill also reportedly tweeted on the subject from July 2020, eventually tweeting on GameStop at least 590 times until he was fired from MassMutual in January 2021. Gill’s social media posts under his characters “Roaring Kitty And “DeepF **** Value” coincided with a run on GameStop stocks, causing wild swings in its price and market. The GameStop frenzy, associated with short sellers suffer drastic losses and brokerage applications the adoption of trade restrictions on certain stocks has led to a tumultuous period of market volatility, media attention and scrutiny by Congress.

According to Galvin, MassMutual did not supervise Gill and other brokerage / dealer agents in reviewing their use of social media, even as Gill created “educational content” that MassMutual agents would use when speaking. with clients and others. According to the order, at least one MML employee was aware of Gill’s posts on GameStop in September of last year, but it was not until January 18, 2021 that another employee alerted the head of In Good Company (IGC), ad / b / a and the marketing program Gill worked for in MML. (Gill wasn’t fired until Jan. 28, during which time he made 19 additional securities-related social media posts, according to the ordinance.)

In response to the controversy, Gill was sued in Massachusetts federal court for allegedly portraying himself as an “amateur investor” and for artificially increasing the price of GameStop stock, and registration with FINRA with MML was made redundant about a month after terminating his employment there. In written testimony during a congressional hearing on the GameStop saga, Gill argued that he had never sold any titles or acted as an advisor while working for MML, and had never solicited GameStop investments for his own benefit, calling the idea that he was using social media to promote the action “absurd.”

“I was perfectly clear that my channel was for educational purposes only and my aggressive investing style probably wouldn’t suit most people who watch the channel,” he said. “That other individual investors bought the stock was irrelevant to my thesis, the emphasis was on the fundamentals of the company. “

According to the investigation by Galvin’s securities division, MassMutual also failed to detect nearly 1,700 transactions that Gill made in three separate individual accounts, including transactions almost twice as high as the limit of 250. $ 000 per business transaction. Additionally, he executed at least two GameStop transactions totaling over $ 700,000 without MassMutual’s knowledge, and in a separate order, Galvin demanded that MML obtain the registration of 478 b / d agents and pay an administrative fine. of $ 750,000.

“MassMutual is happy to put this case behind us, avoiding the expense and distractions associated with protracted litigation,” a MassMutual spokesperson said of Galvin’s order.

Last week, MML Investors Services settled with the Securities and Exchange Commission for allegedly failing to disclose conflicts of interest in income sharing arising from recommendations of mutual fund share classes. An investigation into Gill’s Massachusetts recording is “still ongoing,” according to Galvin’s office.


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Betterment reorganizes personalized portfolios, advices on direct indexing http://freebassuk.com/betterment-reorganizes-personalized-portfolios-advices-on-direct-indexing/ http://freebassuk.com/betterment-reorganizes-personalized-portfolios-advices-on-direct-indexing/#respond Wed, 15 Sep 2021 20:34:24 +0000 http://freebassuk.com/betterment-reorganizes-personalized-portfolios-advices-on-direct-indexing/ In a move that could set the stage for Betterment to begin offering direct indexing capabilities for advisors, Betterment for Advisors is removing minimum investments and revising its software. With the introduction of personalized model portfolios, advisors no longer have to meet a minimum of $ 2.5 million investment, which was once required. In addition, […]]]>

In a move that could set the stage for Betterment to begin offering direct indexing capabilities for advisors, Betterment for Advisors is removing minimum investments and revising its software. With the introduction of personalized model portfolios, advisors no longer have to meet a minimum of $ 2.5 million investment, which was once required. In addition, Betterment overhauled its back-end systems, reducing the need for advisors to work directly with Betterment’s trading and investment teams and making it easier for advisers to build their own portfolios by accessing the more than 1,500 ETFs available. .

While Betterment is making its custom model portfolio feature available to more advisors, the core of the feature remains largely the same as what was quietly introduced earlier this year.

Advisors can choose from a menu of ETFs (for all practical purposes, individual securities are not yet supported on the platform), adjust the allocation of these funds to match up to 10 levels of client risk different, deciding how quickly to move from an existing portfolio to a new portfolio — and considering the tax consequences during that transition — as well as assigning the portfolio to a client.

Currently, advisers are tied to Betterment’s capital market assumptions, but they will soon be able to review and change those assumptions as well. Tasks such as harvesting tax losses and rebalancing are already automated.

When the feature was first announced, Betterment cited the cost of building and maintaining the wallet as the reason it required a minimum. An improvement in “operational capabilities” has reduced that cost and it no longer needs to be supported by a minimum investment, said Jon Mauney, managing director of Betterment for Advisors.

“Previously you had to come see us and we would work with our operations team, our trading team and our investment analysis team to actually be able to put together these portfolios,” he said. “Now this is entirely in the hands of the advisor. “

While they can build portfolios more easily, advisors are still limited by Betterment’s investment menu.

Crypto investments like those offered by iCapital Network and Grayscale or Wealthfront, for example, are not available. “Our general opinion is that things are always a bit pricey,” Mauney said. “We want to provide efficient access to asset classes. Crypto is an increasingly important asset class. If we get to the point where we think it’s effective access, and we trust the fundamentals and we trust the cost and that sort of thing, that’s definitely something we can look at.

Individual stocks are not yet widely available either, at least for now.

But in a preview of the revised wallet functionality offered at WealthManagement.com, evidence from the platform’s backend suggests direct indexing capabilities are on the horizon. Advisors who build their own portfolios build what are called “security groups” from a drop-down menu of available ETFs, under a heading called “Securities”.

Betterment’s “Security Group” and “Securities” functionalities, part of an interface designed for advisors creating personalized portfolios.

“The idea for us internally is that it’s a flexible concept, and we didn’t want to get locked into something too specific at the moment,” Mauney said. “We are of course interested in direct indexing, because it is an interesting space. There are a lot of things that we have to do on our end to be able to release a great product around this, but it is definitely something that interests us in the long run.

Direct indexing at Betterment for Advisors could happen, Mauney added, “maybe in the future.”

The possibility seems more and more likely given the available capacities. Although Betterment retains its own assets, it uses Apex Clearing in its trading technology stack. Apex has for years provided support for investing in fractional shares, a fundamental feature of direct indexing.

If Betterment sees direct indexing on the horizon, it’s not the only one. Vanguard bought direct index technology company Just Invest this summer, a first for the asset manager. Just Invest was founded in 2016 and manages over $ 1 billion in assets. Vanguard has already launched a pilot program for its RIA clients over the past year and a half, powered by Just Invest. Enhancement competitor Wealthfront also offers a direct index version.

Technology, however, is not a silver bullet. RobustWealth, now closed, started offering this feature three years ago. Its activity for advisers was closed this year.

Meanwhile, the custom template wallet interface used by advisers has been revamped to make it more user-friendly, Mauney said. The company is in the process of migrating the retail and business segments of Betterment to the same base used by the advisory business.

As wallet personalization gains in importance at Betterment, executives have considered offering a model market, Mauney said, but it doesn’t appear to be gaining much traction. Betterment already offers third-party models from Vanguard, BlackRock and Goldman Sachs, and has entered into an agreement with Dimensional Fund Advisors to offer portfolios. “We’ve talked a lot about the idea of ​​a model portfolio market,” Mauney explained. “One of the things we come back to is that we don’t necessarily feel the need to go out of our way to highlight these portfolios, now that you can create whatever you want on our platform.

Betterment for Advisors has over 600 companies on its platform, Mauney said, with a “dumbbell situation” of very large companies looking to segment clients, on the one hand, and companies under 150 million. dollars who want more automation. “We encourage our existing businesses to further consolidate their business volume on our platform,” he added, noting that the increased accessibility of custom model portfolios has now eliminated a major reason why businesses were hesitant. to change completely.

Advisors should be encouraged by the improvement, concluded Mauney. This aligns with CEO Sarah Levy’s pledge to put Betterment for Advisors “at the front of the queue,” he said.

“It was not a trivial investment on our side,” he said. “We have done a non-trivial overhaul of our backend to be able to accommodate a larger set of models in the future in a way that will benefit us immediately; but also ultimately benefit our other business sectors.


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House Democrats’ plan to tax the rich leaves vast fortunes unscathed http://freebassuk.com/house-democrats-plan-to-tax-the-rich-leaves-vast-fortunes-unscathed/ http://freebassuk.com/house-democrats-plan-to-tax-the-rich-leaves-vast-fortunes-unscathed/#respond Tue, 14 Sep 2021 01:46:27 +0000 http://freebassuk.com/house-democrats-plan-to-tax-the-rich-leaves-vast-fortunes-unscathed/ The proposal includes substantial measures to raise taxes for the rich. Taxable income above $ 450,000 – or $ 400,000 for unmarried people – would be taxed at 39.6%, the highest rate before President Donald J. Trump’s 2017 tax cut brought it to the fore. at 37%. The highest rate of capital gains would drop […]]]>

The proposal includes substantial measures to raise taxes for the rich. Taxable income above $ 450,000 – or $ 400,000 for unmarried people – would be taxed at 39.6%, the highest rate before President Donald J. Trump’s 2017 tax cut brought it to the fore. at 37%. The highest rate of capital gains would drop from 20% to 25%, considerably lower than a White House proposal that would have taxed investment gains as income for the richest, to 39.6%.

According to the committee’s plan, a 3% surtax would be applied to revenues over $ 5 million. The value of estates protected from inheritance tax, which has doubled to $ 24 million for married couples under Republican tax cuts in 2017, would drop to $ 12 million by the end of this year , four years before the expected expiration.

The proposal would also raise taxes in various ways on businesses called flow-through entities – like many law firms and financial companies – that distribute profits to their owners, who then pay personal income taxes. These changes, including extending an existing 3.8% surtax to include transferred income, would increase taxes primarily on high earners, generating several hundred billion dollars in income, Democratic estimates say.

The joint committee estimated on Monday that the changes would bring in about $ 1 trillion for those with higher incomes.

Republicans hesitated at the proposal. Business lobby groups rejected the package, with the US Chamber of Commerce calling it “an existential threat to America’s fragile economic recovery and future prosperity.”

“President Biden, Speaker Nancy Pelosi and House Democrats are imposing billions in unnecessary spending and crippling tax hikes that will drive prices even higher, kill millions of American jobs and push them to foreigner, and usher in a new era of government dependency with the greatest expansion of the welfare state in our lifetime, ”said Rep. Kevin Brady of Texas, the committee’s senior Republican, of the plan.

But what’s not included is notable. The richest of the rich earn little on real wages (Mr Bezos’ salary as founder of Amazon was $ 81,840 in 2020), so an income surtax would have little impact. Their immense fortunes in stocks, bonds, real estate and other assets grow largely tax-sheltered every year.


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BlackRock enters China, Soros warns of ‘tragic mistake’ http://freebassuk.com/blackrock-enters-china-soros-warns-of-tragic-mistake/ http://freebassuk.com/blackrock-enters-china-soros-warns-of-tragic-mistake/#respond Wed, 08 Sep 2021 17:49:51 +0000 http://freebassuk.com/blackrock-enters-china-soros-warns-of-tragic-mistake/ The world’s largest investment manager is entering mainland China’s onshore market, and a number of other Western companies are considering doing the same. The question is whether such strategies will work at a time when Western countries disagree with Beijing over the latter’s policies. BlackRock has raised around $ 1 billion for the very first […]]]>

The world’s largest investment manager is entering mainland China’s onshore market, and a number of other Western companies are considering doing the same. The question is whether such strategies will work at a time when Western countries disagree with Beijing over the latter’s policies.

BlackRock has raised around $ 1 billion for the very first mutual fund managed solely by a foreign company licensed to sell to Chinese individuals, the
the Wall Street newspaper and others reported yesterday.

On August 30, BlackRock launched a set of mutual funds and other investment products for Chinese consumers.

Launches of such funds spark controversy over the extent to which Western companies should do business with China at a time when Beijing is at odds with the United States and Europe over human rights, repression national security last year in Hong Kong and other topics. .

The BlackRock China New Horizon Mixed Securities Investment Fund received more than 111,000 orders from individual investors in China during a five-day marketing period last week, the report said, citing a statement. The fund will allocate 60-95% of the assets in equities and certificates of deposit in sectors such as new energies, consumption, digital economy, healthcare, education and advanced manufacturing, WSJ report said.

BlackRock told this post that the first mutual fund of its wholly-owned fund management company in China was officially established on September 7.

“We are very proud to have taken this important step for our fund management business in China and we are grateful for the massive support from investors. As a client trustee, we are committed to helping investors improve their financial well-being. We are excited to be able to bring our investment and risk management expertise to help make investing easier and more affordable for Chinese investors, ”said Rachel Lord, President of BlackRock and Head of Asia -Pacific, in a statement sent by email to this press service.

Chi Zhang, Managing Director of BlackRock Fund Management, added, “We are very pleased with the official establishment of our first mutual fund in China. The support and confidence of our investors and distribution partners has been extremely encouraging. We are committed to providing long-term investment opportunities for Chinese investors, leveraging our experience in investing in A-shares and our expertise in investing and risk management to help further ‘investors to improve their financial well-being.

The fund will be distributed by China Construction Bank, Bank of Communications, Ping An Bank, CITIC Securities, Orient Securities, Huatai Securities, Shenwan Hongyuan Securities, Haitong Securities and Guosen Securities, BlackRock said.

China has lifted restrictions on foreign wealth managers, including ending restrictions on U.S. asset managers selling mutual funds to individual investors. BlackRock, which oversees more than $ 9.5 trillion in assets and is by far the world’s largest fund manager, was the first company to be fully licensed to sell its own mutual funds to Chinese individuals .

The newspaper’s report noted that other companies could follow BlackRock’s lead. Fidelity International obtained preliminary approval last month; Neuberger Berman and VanEck seek authorization for their mutual fund operations in China. As late as September 3, Paris-listed BNP Paribas was preparing for its asset management arm to form a wealth management business with a unit of the Agricultural Bank of China.

Soros, writing in the WSJ, described BlackRock’s push into the Chinese market as a “tragic mistake.”

The Hungarian-born financier, whose business is now run as a family office and no longer oversees foreign money, said BlackRock’s transactions in the Chinese economy will not only lose money for its clients long term, but will also cause damage to national security. of the United States and other democracies.

Soros wrote on September 6: “BlackRock takes its responsibilities to our customers’ money seriously and is a leader in the environmental, social and governance movement. But he seems to misunderstand President Xi Jinping’s China. The company appears to have taken Mr. Xi’s regime statements at face value. He drew a distinction between state enterprises and private enterprises, but that is far from the reality. The regime views all Chinese companies as instruments of the one-party state.

“This possible misunderstanding could explain BlackRock’s decision, but there may be another explanation. The benefits to be gained from entering the hitherto closed Chinese financial markets may have influenced their decision.

“The BlackRock Initiative puts the national security interests of the United States and other democracies at risk, as the money invested in China will help support President Xi’s regime, which is repressive at home and aggressive abroad.” . Congress is expected to pass legislation allowing the Securities and Exchange Commission to limit the flow of funds to China. The effort should have bipartisan support, ”he added.


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Legal shield for owners of Purdue Pharma is at the heart of appeals http://freebassuk.com/legal-shield-for-owners-of-purdue-pharma-is-at-the-heart-of-appeals/ http://freebassuk.com/legal-shield-for-owners-of-purdue-pharma-is-at-the-heart-of-appeals/#respond Sat, 04 Sep 2021 15:35:42 +0000 http://freebassuk.com/legal-shield-for-owners-of-purdue-pharma-is-at-the-heart-of-appeals/ The end of the Purdue Pharma bankruptcy case left a bitter taste for those who wanted to see more responsibility for the members of the Sackler family. The Sacklers will relinquish ownership of the company, withdraw from the international opioid trade and pay $ 4.5 billion in cash and charitable assets as part of the […]]]>

The end of the Purdue Pharma bankruptcy case left a bitter taste for those who wanted to see more responsibility for the members of the Sackler family.

The Sacklers will relinquish ownership of the company, withdraw from the international opioid trade and pay $ 4.5 billion in cash and charitable assets as part of the settlement. But they will also escape future responsibility for the country’s drug and overdose crisis under the deal that was approved this week by a federal bankruptcy judge.

Some state attorneys general and a federal government office provide for appeals.

The question at the heart of their arguments: is it appropriate for members of a well-to-do family who have not filed for bankruptcy themselves to obtain such broad protection?

Lawyers and victim advocates involved in a case that included lawsuits from some 3,000 governments and other entities said members of the Sackler family who owned Purdue were instrumental in overseeing the business and marketing of OxyContin. Critics say the company’s best-selling prescription painkiller helped fuel the opioid crisis in the United States


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Bankruptcy judge approves Purdue Pharma’s $ 10 billion settlement plan with immunity for Sackler family http://freebassuk.com/bankruptcy-judge-approves-purdue-pharmas-10-billion-settlement-plan-with-immunity-for-sackler-family/ http://freebassuk.com/bankruptcy-judge-approves-purdue-pharmas-10-billion-settlement-plan-with-immunity-for-sackler-family/#respond Wed, 01 Sep 2021 20:55:00 +0000 http://freebassuk.com/bankruptcy-judge-approves-purdue-pharmas-10-billion-settlement-plan-with-immunity-for-sackler-family/ BWhite Plains, New York-based bankruptcy court judge Robert Drain has approved OxyContin maker Purdue Pharma’s $ 10 billion reorganization plan that will settle thousands of lawsuits against the company for its role in the fueling the opioid epidemic. The settlement will require members of the Sackler family, who own Purdue Pharma, to pay at least […]]]>

BWhite Plains, New York-based bankruptcy court judge Robert Drain has approved OxyContin maker Purdue Pharma’s $ 10 billion reorganization plan that will settle thousands of lawsuits against the company for its role in the fueling the opioid epidemic.

The settlement will require members of the Sackler family, who own Purdue Pharma, to pay at least $ 4.5 billion over nine years to the settlement fund in return for immunity in a wide range of civil lawsuits against individual members for Purdue related issues. It was a sticking point for nine state attorneys general who argued the final deal was too easy for the Sacklers, who admitted no wrongdoing.

PURDUE PHARMA AND STATES AGREE ON OXYCONTIN SETTLEMENT OF $ 4.5 BILLION

“It’s a bitter result,” Drain said, according to NPR. “I think at least some of the Sackler parties are responsible for these [opioid OxyContin] complaints. … I would have expected a higher settlement. “

Washington, California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and the District of Columbia jointly filed their objection to the plan in July, arguing that the bankruptcy court lacks the power to prevent attorneys general from ” enforce state law, including the decision to prosecute family members who do not seek bankruptcy protection.

“This settlement plan allows the Sacklers to walk away as billionaires with a lifelong legal shield,” Washington State Attorney General Bob Ferguson said. noted last month.

The Sacklers will relinquish control of Purdue Pharma, which will be restructured into a new company overseen by an independent board of directors. Profits from the opiate OxyContin as well as the anti-overdose drug Naloxone will be channeled to trusts through which states, municipalities, tribes and others will have access to funding for prevention and treatment programs. drug addiction.

Even without Purdue Pharma to manage, the Sacklers will still be extremely wealthy. A summary of the family’s wealth was given to members of the House Monitoring and Reform Committee, which revealed in April that the family is worth around $ 11 billion.

“Members of the Sackler family pressured Purdue to use deceptive marketing practices to flood communities with this dangerous pain reliever, and now the Sackler family are trying to use Purdue’s bankruptcy process to escape individual responsibility for their role in feeding the opioid epidemic, ”said Carolyn, chair of the committee. Maloney, a Democrat from New York, said at the time.

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Purdue Pharma launched OxyContin in 1996, and it was aggressively marketed and heavily promoted as a safe, non-addictive pain reliever for moderate to severe pain. Pharmaceutical vendors have successfully flooded rural communities with pills by marketing them directly to doctors who would benefit financially from overprescribing the drug. In 2018, for example, healthcare providers in West Virginia wrote 69 opioid prescriptions per 100 people, compared to the national average rate of about 51 prescriptions. By 2004, OxyContin had become one of the leading drugs of abuse in the United States, in part due to overprescribing

Almost 500,000 people died of opioid overdoses from 1999 to 2019. People who become addicted to prescription opioids, often as a result of a medical procedure, typically switch to heroin or drug abuse. other synthetic opioids after they run out of pills. Synthetic opiates such as fentanyl, which is 50 times more powerful than heroin and 100 times more potent than morphine, have led to a drastic increase in overdoses since 2013, according to federal data. Now, fentanyl is detected in other illicit drugs such as methamphetamine and cocaine, which increases the risk of the user dying of an overdose.

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Key words: Health care, New, Opioid abuse, Pharmaceutical industry, opioid crisis, Heroin, Medications, Bankruptcy

Original author: Cassidy Morrison

Original location: Bankruptcy judge approves Purdue Pharma’s $ 10 billion settlement plan with immunity for Sackler family


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