SVB Collapse Revisits Bank Regulation Issues
The Silicon Valley Bank (SVB) collapse last week sent shockwaves across the stock market, with banks particularly taking a hit. This was the end of a familiar cycle: the boom, followed by the bust, and now the bailout. While the primary responsibility for the failure lies with SVB’s management, regulators have been called into question […]
Continue reading Chancellor Hunt Announces Sweeping Changes to UK Pensions System
In his Budget speech on Wednesday, Chancellor of the Exchequer Jeremy Hunt announced sweeping changes to the pensions system in the United Kingdom, with the aim of encouraging older, highly-skilled workers to stay in the workforce. The lifetime allowance for pensions was eliminated by Hunt, and the annual contribution limit for tax-free payments was increased […]
Continue reading Should the Full Retirement Age be Raised to 70?
As lifespans increase and Social Security’s finances shrink, some lawmakers have proposed raising the full retirement age to 70 in order to reduce Social Security costs over the near term. While this would help cover payments to the very elderly, it would also widen the financial gap for those claiming early. Despite the potential cost […]
Continue reading Maximizing Social Security Benefits: Penalty for Early Claiming, State Taxes, Benefit Base and More
The Social Security Administration (SSA) provides a variety of benefits to millions of retirees, but the amount of benefits they receive depends on a variety of factors. For instance, when a retiree claims benefits early, there is a penalty, which can be as much as a 30% haircut on the primary insurance amount (PIA).[0] This […]
Continue reading The Impact of SVB Financial Group on Investor Cash Management
The SVB Financial Group 401(k) and Employee Stock Ownership plan had 19% of its $1.3 billion in assets in company stock as of Dec. 31, 2021, or about $245 million.[0] This amount is not unusual for bank employee retirement plans, as many other companies such as Zions Bancorporation have similar allocations.[1] Unfortunately, the company stock […]
Continue reading Protect Your Deposits: What the Silicon Valley Bank Disaster Can Teach Us
Silicon Valley Bank had a multitude of deposits from one specific industry, numerous large depositors that were not FDIC insured and a high ratio of securities with unrealized losses in comparison to their total capital. This made them incredibly vulnerable to the digital depositor “rug-pull” that caused them to sell their securities at a major […]
Continue reading Budget 2023: Changes to Pension Rules Encourage People to Stay in Work Longer
In his Budget speech on Wednesday, Chancellor Jeremy Hunt announced a series of changes to pension rules in the UK. These are designed to encourage NHS doctors and other high earners to remain in their jobs for longer, as well as to mitigate the risk of people accessing their money purchase (or DC) savings and […]
Continue reading Chancellor Jeremy Hunt Announces Overhaul to Pension Tax Rules
In Chancellor Jeremy Hunt’s Spring Budget, he announced an overhaul to pension tax rules in an effort to encourage over-50s to remain in or return to work.[0] This includes the abolition of the lifetime allowance on pensions from April 2024 and the increase of the annual allowance from £40,000 to £60,000 from 6 April 2023.[1] […]
Continue reading The Best Money-Saving Tips for Frugal Living
Frugal living is a great way to save money without sacrificing your quality of life. There are plenty of tips, tricks, and hacks available to help you get started, but not all of them are created equal. Here, we will explore some of the best frugal living tips that can help you save a ton […]
Continue reading Social Security Crisis Looms: How Will Congress React?
As the retirement of baby boomers continues, the Social Security trust fund is facing an unprecedented crisis. In the most recent Social Security Trustees Report, released in June 2022, it was estimated that the trust funds which have been compensating for the deficit in funding would be exhausted by 2035.[0] According to a Congressional Budget […]
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