Legislators have had limited success repealing Obama-era financial regulations, but the Trump administration's leadership picks for key agencies can make a difference in how rules are implemented and enforced, writes Jesse Hamilton. The Volcker rule and capital requirements are at the top of the list for review, Hamilton notes.
Fluctuation in home values means homeownership does not necessarily build wealth, finds a study by Florida Atlantic University, Florida International University and the University of Wyoming. Property appreciation is correlated with stocks and bonds, while renting and reinvesting tends to build wealth, a co-author of the study says.
Recent surveys indicate a preference among millennials to make long-term investments in real estate rather than in vehicles such as stocks and bonds. Wealth-management analyst Elizabeth Sohmer, however, points out that real estate investments generally provide lower returns than the Standard & Poor's 500 index, except in times of extreme stock market volatility.
Senior citizens in the US have poorer health and more financial worries than their counterparts in 10 other wealthy Western countries, a Commonwealth Fund survey finds. Study author Robin Osborn says the situation is likely to worsen as a result of rising health care costs.
The latest version of the Senate tax bill has dropped a proposal that would have eliminated the tax break on catch-up contributions to 401(k) plans. There had been concerns that the proposed cap would lead to the "Rothification" of 401(k) accounts.
Lengthening life spans are creating new risks for people approaching retirement, and many of them are aware of the challenge that awaits them, a survey indicates. The Insured Retirement Institute found that just 23% of baby boomers are confident that their savings will get them through retirement or that they are well-prepared to leave the workforce.
An underwhelming performance review can be an opportunity to demonstrate you can take advice, says Tammy Perkins, chief people officer at Fjuri Group. Seek guidance from a mentor on the best ways to move forward and improve.
The Consumer Financial Protection Bureau "will remain a political, partisan agency whose pendulum will swing greatly every five years" unless the structure changes from a single director to a bipartisan commission, CBA President and CEO Richard Hunt says. He calls this a "horrible way to govern."
The next director of the Consumer Financial Protection Bureau could propose changes to a qualified-mortgage rule and stall a rule on small-dollar lending, industry experts say. Pending litigation and enforcement actions also might be reviewed.
Banks that partner with financial-technology companies for consumer information can influence standards on protection and privacy, says Federal Reserve Governor Lael Brainard. "Banks have a stake in ensuring that their vendors and third-party service providers act appropriately, that consumers are protected and treated fairly and that the banks' reputations aren't exposed to unnecessary risk," she said.
- Page 1