What Medicare under Trump may look like; Merrill hit with discrimination suit; tax strategies for home repairs; post-election portfolio allocations
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RETIREMENT: On January 20, Donald Trump will begin his second term as president after four years away from the White House. During those four years, Medicare underwent major changes — changes that Trump has fiercely opposed. What will happen to the program now?
As with Social Security, Trump has repeatedly vowed to keep his hands off Medicare. What complicates that promise is the Inflation Reduction Act. For Medicare recipients, the act sets a cap on out-of-pocket expenses, limits the price of insulin, makes vaccines free and — most significantly — allows Medicare itself to negotiate the prices of drugs. Trump wants to repeal all that.?
INDUSTRY NEWS: Last week Merrill introduced a policy seeking to take discrimination disputes out of courts and before arbitration panels.
Calling the policy a "slap in the face," a pair of Merrill advisors are now suing the firm over alleged mistreatment that they say they would previously have tried to overcome without resorting to litigation. Linda Davila and Cathy Bender are seeking class action status for a civil complaint they brought on Friday in federal court alleging they suffered discriminatory treatment from Merrill and its parent company, Bank of America. Both Davila, who lives in New York, and Bender, who is in Tennessee, are Black women. Their suit alleges they have been systematically excluded throughout their careers from becoming members of the productive advisory teams.?
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TAX PLANNING: Financial advisors and tax professionals whose clients are repairing or renovating their home or another real estate property can help them unlock some savings in the process.
The many available strategies for tax savings tied to home improvement begin with the question of whether the client is working on their personal residence, a house or apartment where they live but also operate their own business, or a property that they have invested in as a real estate endeavor, according to certified public accountant Miklos Ringbauer of Los Angeles-based MiklosCPA. And they revolve around regular meetings with clients discussing any plans they have for upgrades and exploring potential tax strategies, he said in an interview.
INVESTING: Voters decided to send Donald Trump back to the White House and put the Republican Party back in control of the U.S. Senate. Two days later, Federal Reserve Chair Jerome Powell announced another drop in interest rates.
How the former will affect the latter, and how both will change client portfolios going forward have been on the minds of advisors these past few days. Here’s what they’re saying.
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