IRA tax traps; Student loan credit repair

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The Independence Day fireworks may have passed, but the stock market has done a good job for investors. The week started off with a bang, as big tech stocks like Amazon and Apple launched the S&P and Nasdaq to new highs on Wednesday, only for major indices to collapse the next morning to their lowest levels in July. Find out what this means for your portfolio, plus the latest in retirement planning, tax traps and more.

Market maneuvers

The Dow Jones fell 500 points on Thursday morning amid heightened concerns that fast-spreading variants (and in particular the Delta variant) could again force closures and slow the economic recovery. Robinhood has filed its IPO prospectus, revealing that the founders of fintech could be sitting on multibillion-dollar fortunes if things go right. For investors tired of valuations, the Fed’s final minutes shed more light on what transitory inflation might look like and the potential impacts on the market.

Avoid the double tax trap

Dive into the two most family-friendly provisions of the latest stimulus package: the expanded child tax credit and the child and dependent care credit. For some parents, opting out of monthly child tax credit payments might in fact 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 big crop

If you’re already retired and have a taxable brokerage account and a tax-deferred IRA, here’s a handy calculator to help you figure out what to cash out first. As senior residences and home care agencies face a severe staff shortage, here is what can be done to recruit and retain these essential workers as the pandemic eases. In a terrific article, senior contributor Joseph Coughlin argues that we are undergoing a “big reframing” of choices and behaviors in life, redefining the way we think about work, retirement, relationships and everything in between.

New chart: Delta Blues – Despite the strong economic recovery, the pandemic persists.

Source: Statistical

Buckeye Benefits

Two Ohio lawyers sue to force their governor to reinstate the increase in federal unemployment benefits by $ 300 per week, following temporary injunctions issued after similar lawsuits were filed in Indiana and Maryland . Although the unemployment rate edged up in June, the United States also created 850,000 new jobs, exceeding analysts’ expectations.

Millennium Money Mistakes

Congress is considering some new bills that could drastically change credit reports 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 financial mistakes Millennials often make.

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