FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
No cost-of-living adjustment for Social Security beneficiaries in 2015 (Investment News)
On Thursday, the Social Security Administration announced there will be no 2015 cost-of-living adjustment. According to Invesment News, about 70 million Americans will be impacted by the decision. The absence of a cost-of-living adjustment and a possible jump by as much as 52% in Medicare Part B premiums for some retirees, means higer income beneficiaries and those joining the plan in 2016 could actually see a net reduction in their Social Security benefit. “Social Security recipients spend more of their monthly budget on health care, food and housing than do younger workers, and all three of those categories have experienced meaningful price increases over the past year,” Nancy LeaMond, AARP’s chief advocacy and engagement officer, noted in a letter to Congress that pleaded for relief.
Albertsons is delaying its IPO (Business Insider)
US grocer Albertsons is postponing its initial public offering, a person close to the matter told Reuters. The company was supposed to price its IPO on Thursday, but decided to dealy the offering after Walmart announced disappointing forward-looking estimates. No makeup date for the pricing has been scheduled.
The debt ceiling is approaching (Business Insider)
In a letter to congressional leaders, Treasury Secretary Jack Lew announced the Treasury Department would exhaust its extraordinary measures no later than November 3.”Operating the United States government with no borrowing authority, and with only the cash on hand on a given day, would be profoundly irresponsible,” Lew wrote. The failure to raise the debt ceiling by that date could cause the US to default on its debt for the first time ever. The debt ceiling was last raised in 2013, but has an added twist this time around as House Speaker John Boehner is scheduled to step down at the end of October. No vote has yet been scheduled for his replacement.
52 groups want the carried interest loophole closed (Think Advisor)
52 organizations have asked Congress to support the Carried Interest Fairness Tax Act, which, according to the Joint Committee on Taxation, would reap $15.6 billion over 10 years. In a letter to Congress, the organizations declared closing the loophole would provide funding for programs designed to support the growth of the middle class. According to Think Advisor, the act would “close a loophole allowing fund managers to classify their income as long-term capital gains, which is taxed at a top rate of 20%, instead of wage income, which is taxed at a top rate of 39.6%.”
LPL lands $3 billion advisor group (Financial Planning)
Bleakley Financial Group, a Fairfield, N.J.-based independent financial advisory firm, has decided to use LPL Financial for its custodial and broker-dealer services. The 110 investment professionals at Bleakley have collected $3 billion AUM, according to Financial Planning. “The available tools and resources help us fulfill our commitment to providing superior service as we meticulously plan each financial recommendation and decision,” Bleakley Principal Scott Schwartz said in a statement.