This is a preview of Sound Money, Forbes’ free weekly newsletter on pressing topics for your financial well-being: personal finance, investments, taxes, and retirement. Subscribe to get it delivered to your inbox.
Adding Bitcoin to your 401 (k)? It’s an option. (Photo by Chesnot / Getty Images)
Bitcoin has taken a hit in the past few months – losing nearly half of its value after crossing the $ 60,000 mark in mid-April – but it’s back on the mend. With the price hovering around the $ 40,000 mark, some cautious investors have jumped back on the crypto bandwagon. Talking heads are pondering the value of Bitcoin as an inflation hedge or even as part of your retirement account … though the tax implications require a close eye.
Read on to read Forbes on the latest personal finance news, everything from crypto crashes to wood prices to child tax credits (and more).
Risk taking in retirement
Coinbase crypto exchange has unveiled a new partnership that allows some customers to invest up to 5% of their retirement savings in over 50 cryptocurrencies, including Bitcoin. Sounds risky? AARP’s senior policy expert thinks so and warns that crypto “definitely not suitable for retirement planning.“Biden’s budget includes another concern for some wealthy early retirees: a proposed increase in the top capital gains tax, the implemented retrospectively. (It looks legal, but whether Congress actually passes it is another question.) Contributor Richard McGahey points out that the pandemic has also increased economic pressures on vulnerable older workers who cannot afford to be in To retire and proposes Adding an “Older Worker Office” to the Ministry of Labor as a possible solution.
Credits for children
Parents, take note: The IRS just released a new FAQ via the newly (and temporarily) extended child tax credit, plus an online tool to reach eligible parents who do not normally file tax returns. (Parents can get $ 3,000 in credit for each child ages 6-17 and $ 3,600 for each child under 6 years old; half of the credit can be paid in monthly cash advances starting July 15.) Think about it to get into cryptocurrency? Contributor Guinevere Moore explains how to avoid that 10 common tax mistakes when reporting (or not reporting) cryptocurrency transactions to the IRS.
Novel Chart: Portfolio Warning – Is Inflation Really Back or Is It Just Coming?
Bitcoin’s price is similar to a dizzying ride in a theme park, but hedge fund billionaire Paul Tudor Jones says the cryptocurrency is a “reliable” inflation hedge and “a way to invest in security.” Sports betting is another very risky investment option, but the DraftKings founders see a path to profitability when more states legalize their business. Just don’t buy iron-titanium—the Mark Cuban backed cryptocurrency has crashed to zero on Tuesday, signaling impending volatility for competing tokens.
Lumberjack down again
The much discussed soaring Timber price has fallen by more than 40% since peaking in May, suggesting the economy – well, commodities at least – may revert to the status quo. Nevertheless, rising prices on a broad front are ringing the alarm bells for inflation doomsters. To their annoyance, the Fed has just announced that it will not hike rates until the end of 2023. Here are some possible reasons to wait. Although 26 states (and more) have already announced plans to cut US $ 300 state unemployment benefits, Goldman Sachs predicts the labor shortage will continue mostly by the end of benefits in each state in early September.
Bearish about another student loan deferral extension? You’re not alone.
The current payment moratorium for student loans expires on September 30th. There’s a glimmer of hope that the date will be extended Still, borrowers should prepare to start paying again in October. Vaccinated and itchy to be born again? I’m sorry to tell you that you are not alone – almost nine in ten Americans plan to travel in the next six months, and Forbes Advisor has tips on how to prepare for a vacation and hopefully outsmart the crowds.