Month: May 2021

The world is changing in unprecedented ways. As you near or are already enjoying your retirement, you know that firsthand. You’re watching the news, the legislation, and the markets to see how all three could affect your retirement portfolio. Here, we break down the most recent information regarding the stimulus plan and retirement contributions and withdrawals.

President Biden’s $1.9 trillion stimulus package, known as the American Rescue Plan, took effect March 2021. Here are components of the plan that could affect current and future retirees.

Pension Bailout

The package includes an $86 billion fix for failing pensions, according to The Washington Post. The money enables struggling multi-employer pension plans to pay full pensions to hundreds of thousands of retirees for the next few decades.

The New York Times reports that the bailout will rescue about 185 union-sponsored pension plans that were close to collapsing. While Democrats applauded the $86 billion fix, Republicans assailed it as a taxpayer-funded handout.

Stimulus Checks

Some Americans have received stimulus checks totaling $410 billion. A family of four could have qualified for as much as $5,600 in stimulus payments. Some people have put this money toward shoring up their retirement savings.

“In the short term, stimulus money put in savings or used to pay down debt may not give an immediate boost to the economy, but households that have more savings and less debt are in a better position to spend on a consistent basis going forward,” Greg McBride, chief financial analyst at Bankrate, told NBC News.

Contribution-Limit Freeze Removed

The plan initially froze contribution limits for retirement plans beginning in 2031, according to ThinkAdvisor. As originally proposed, the American Rescue Plan Act would have “frozen the annual cost-of-living adjustments for overall contributions to defined contribution plans and for the maximum annual benefit under a defined benefit plan,” explains ThinkAdvisor.

Freezing the limits would have been a “bad policy” according to Brad Campbell, partner at Faegre Drinker in Washington, and prevented “many Americans, including many small business owners, from being able to save enough for retirement as inflation erodes the value of savings.”

But the American Retirement Association successfully lobbied to get the contribution cap removed.

Brian Graff, president and CEO of the American Retirement Association, a lobbying group, criticized the proposed freeze as a “budget gimmick.”

Limiting retirement account contributions “would raise tax revenues in the short term, since less income receives the deferment,” explains Andrew Biggs, Resident Scholar at the American Enterprise Institute, “but lower tax revenues in the future.”

Child Tax Credit

The stimulus package also increases the child tax credit to $3,600 per child under age 6 and $3,000 per child for children ages 6 to 17. That’s up from the current $2,000 per child. The one-year change in the tax credit could make more room in your budget for retirement savings.

Expansion of the child tax credit will require about $100 billion in additional federal spending, CBS News notes. However, Columbia University researchers estimate it will generate more than $800 billion in benefits to society.

Student Loan Tax Relief

The plan does not forgive student loans. However, it does include a provision that any student loan forgiveness passed between December 30, 2020, and January 1, 2026, will be tax-free, according to Investopedia. Usually, loan forgiveness counts as taxable income. This tax relief could free up money to put toward a major life event, like buying a home, or funding your retirement savings and putting money into a gold IRA.

According to the Experian credit bureau, student loan debt in the U.S. reached a record-high $1.57 trillion in 2021.

Learn how precious metals could factor into your retirement plans, wherever you are on your journey. Request your free Precious Metals IRA Information Kit today!

The post How the Latest Stimulus Plan Could Impact Your Retirement appeared first on U.S. Money Reserve.

Kitco News

(Kitco News) – Sylvania (AIM: SLP), a lower-cost producer of platinum group metals (PGM) with operations located in South Africa, announced Friday that its Sylvania Dump Operations (SDO) produced 17,420 PGM ounces in March quarter 2021, a 5% decrease compared to 18,363 ounces in December quarter 2020, but in line with management’s projections for the quarter.

The post South Africa’s Sylvania doubles net profit on strong PGM market appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Codelco reports $1.627 billion in profits in the first three months of the year, the highest in over a decade.

The post Codelco posts $1.627 billion in profits in blow out quarter appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Robex Resources (TSXV: RBX/FWB: RB4), a gold mining company focused on Mali, reported today that in 2020, the company’s gold sales were $120.8 million compared to $99.2 million in 2019. Operating income was $48.5 million compared to $21.4 million in 2019.

The post Robex reports gold production decline in Mali in first quarter appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Frustration is creeping into the gold market as the price has been unable to break above $1,800 an ounce even in a market environment that is seeing rising inflation pressures, ultra-accommodative monetary policy, and a government that wants to spend more money.

The post Gold bulls frustrated by disappointing price action and are taking a break appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Concern about inflation and a weakening U.S. dollar, is pushing more than a dozen states to try and recognize gold and silver coins as legal tender.

The post More states pushing to make gold and silver legal tender – former U.S. Mint director appeared first on WorldSilverNews.

Silver COT Report
Fri, 04/30/2021 – 15:29