Congress Wants To Reset Investing | Savings At Risk
Published: 2022-10-12
Status:
Available
|
Analyzed
Published: 2022-10-12
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Millennials and Gen Z will need $3 million for a comfortable retirement due to inflation.
"Millennials and gen Z will now need three million dollars in retirement to live comfortably."
Pending
Proposed legislation will allow 401k plans to include alternative assets like private equity, hedge funds, venture capital, real estate, commodities, infrastructure, insurance, annuities, and digital assets, potentially leading to higher returns and a more secure retirement.
"The retirement savings modernization act would allow 401ks to do the unthinkable... alternative assets this plan and a quote will open the door to higher returns in a more secure retirement for millions of Americans and if you're curious which Investments would be allowed it's everything from private Equity hedge funds Venture Capital firms real estate real estate investment trusts Commodities infrastructure Investments Insurance products annuities and digital assets including cryptocurrency"
Pending
Alternative assets increased the average portfolio return by 17% between 1990 and 2016.
"investing in alternative assets increase the average portfolio by 17 from 1990 through 2016"
Pending
A 5% allocation to Bitcoin would have resulted in a 65% higher cumulative return for a traditional portfolio since 2014.
"another study found that just a five percent allocation to bitcoin would have posted cumulative return of a traditional portfolio by 65 since 2014"
Pending
Retirement account enrollment is proposed to become automatic, with employees being enlisted by default unless they opt out.
"automatic enrollment as it is right now retirement accounts are optional meaning you have to know about them and want one in order to contribute but by making enrollment automatic employees would be enlisted from the very beginning without any work on their end unless they choose to opt out"
Pending
A new proposal would provide a 50% match on the first $2,000 contributed to a 401k, with the credit being reinvested into the account.
"this new proposal would automatically give 50 back up to the first two thousand dollars but it would be given as an investment back into your 401k"
Pending
A provision may allow for penalty-free withdrawals of up to $1,000 annually for foreseen financial emergencies, with a three-year window to repay the funds without incurring taxes.
"this would allow for up to a thousand dollars a year to be taken out for foreseen Financial emergencies and you would have three years to put that money back to avoid paying any tax"
Pending
Roth IRA catch-up contributions for individuals over 50 will be indexed to inflation, allowing an additional $1,000 contribution annually, with this amount increasing based on the Consumer Price Index.
"Roth IRA catch-up contributions would be indexed to inflation this would allow people over the age of 50 to contribute an extra one thousand dollars a year and this would increase each year thereafter depending on CPI"
Pending
For individuals over 50, an additional $1,000 will be allowed for 401k catch-up contributions, on top of the existing $6,500, and this new amount will also be indexed to inflation.
"those over the age of 50 are able to contribute an extra sixty five hundred dollars a year but this would create a new provision that allows those people to contribute an extra one thousand dollars a year on top of that also index to inflation"
Pending
By the year 2060, a Big Mac could cost $25 and gasoline could be $60 per gallon, indicating significantly increased future living expenses.
"this would be in the year 2060 where the cost of a Big Mac could be twenty five dollars and gasoline could be sixty dollars a gallon"
Pending
To reach $3 million in 40 years with an 8% annual return, starting from zero, one would need to invest $10,000 per year ($833/month or $17/day).
"assuming you're starting with zero dollars today you're going to need to invest ten thousand dollars a year or eight hundred and thirty three dollars a month or Seventeen dollars a day for 40 years averaging an eight percent return and voila you've hit three million dollars"
Pending