This week's editor's picks features Republicans' desire to improve the sequester, the business that oppose the Defense of Marriage Act, how parents are spending retirement money on college, and more.
Learned Behavior: Educating Advisors on Behavioral Finance
"Going through those studies to read up on such behavioral traits as client over-optimism and empathy gain, and then figuring out how to counteract them, can be a laborious and time consuming process; one that, understandably, many advisors may not be inclined to do."
More boomers buying ‘longevity’ annuities
"Economists and policymakers in recent years have begun encouraging pension-deprived Baby Boomers to consider relatively new products known as longevity insurance or “deferred income” annuities, designed to restore some financial security to what are supposed to be their golden years. News today from New York Life Insurance Co. confirms that the products are starting to catch on."
How conservatives are blowing it on health care
"Put another way, whether you realize it or not, health care is getting more expensive without getting all that much better. And that surge in the cost of care is one of the central causes of America's fiscal crisis. Conservatives, of all people, should be offended by this trend. After all, it is driving the dire state of our fiscal health."
Parents Are Robbing Retirement for College
"But here's the problem: Most parents don't realize paying for college with money withdrawn from a retirement account can result in a double whammy. First, the withdrawal can count as income which is taxable. Plus, with that additional income, you'll reduce your financial aid eligibility the following year."
New estate tax rules call for new planning tactics
"After years of changes and political arm-twisting, the federal estate tax rules became clear and stable with the year-end fiscal cliff deal. They are now set permanently into the tax code - at least until the tax code changes again."
What Ever Happened to the Long-Term Care Commission?
"Some optimists believe the commission can achieve some modest goals—by framing the importance of long-term care reform and perhaps by agreeing to small reforms. But others have much lower expectations."
Federal Gay Marriage Ban Hurts The Bottom Line, Business Argue
"The law means employers must treat employees in same-sex marriages differently when it comes to things like health care, retirement and taxes, they say, causing 'unnecessary cost and administrative complexity.'"
Republicans want to make the sequester better. Why won’t Obama let them?
(The Washington Post)
"The irony is that the support for this proposal to transfer power to the White House is coming from Republicans, while its most committed opponents are Democrats — including the White House, which hasn’t asked for, and doesn’t want, this authority. "
Reasons to Avoid Buying Stocks, and Why You Should Ignore Them
(The New York Times)
"The reason for such hesitancy is obvious. Investors are still scarred from the 2008 crash and they perceive stocks as risky, a feeling reinforced by a good bit of volatility in the markets in recent years. Yet as stocks rallied earlier this year, money from individual investors began to trickle back into equity funds. This could be good for an intrepid few. "