January 5th, 2024
Rethinking Taxes from a Risk Perspective
When you think about building a financial plan that will help you meet your goals at every stage of your financial journey, from your younger working years through retirement, saving and investing are usually the first things that come to mind.
Starting early, saving as much as possible, and being thoughtful about how you allocate your portfolio to balance risk and return potential are the basics for most investors. As you begin to have more income, and your investments start to grow through the power of compounding, taxes begin to become more important.
But the traditional way of thinking about taxes is that they often take a backseat to investing.
Headlines We're Tracking
A Quant Winter’s Tale: Across the multifactorquantiverse with AQR
Clifford Asness’s office is an odd mix of finance old-timer and teenage bedroom. Books about Churchill stand alongside DC Comics encyclopaedias, the sea of family photos is dotted with islands of vintage Marvel memorabilia, and next to his computer a jar of Pepcid sits next to a jumbo bottle of sriracha.
The Pepcid has probably been used more lately. The founder of the quantitative investment group AQR has been through tough times before — the company nearly folded in its first few years, and was brutalised in the financial crisis — but even those spells paled next to the agony that he went through in recent years. “I cannot over-emphasise how much it sucked,” Asness said in an interview.?
IRS Zaps Nearly $1 Billion in Penalties for Taxpayers
Americans who owe back taxes will be given an incentive to pay up after the Internal Revenue Service said Tuesday it would waive nearly $1 billion in late-payment penalties.
Roughly 4.6 million individual taxpayers who owe for tax years 2020 and 2021 will be eligible for the penalty relief. The IRS is extending the olive branch because it stopped sending out many collection letters during the pandemic. It hoped the letter halt would help struggling taxpayers and reduce its backlog.
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-Grant