Get Forbes’ top articles on pressing issues that matter to your financial well-being—personal finance, investing, taxes and retirement—delivered to your inbox every week.
Prospects for a peaceful presidential transition seem to have pleased the market gods with both bitcoin and the Dow soaring during the short market week. Moving to Black Friday, it will be an unusual Thanksgiving this year. Retailers like Walmart WMT and Target TGT are staying closed on Thanksgiving day, and early-bird discounts are getting scaled back to discourage crowds and long lines the following morning. You can still make the most of the best deals—some are already in full swing. But about half of Americans expect to reduce holiday spending anyway this year if a second stimulus check never comes. With stocks enjoying another week of new record highs and the Dow finally crossing 30,000, here’s what you need to know about market rotation to make sure your retirement is taking advantage of it. And if you’re already retiring, it’s time to rethink the 4% drawdown rule of thumb. Your earnings yield is probably closer to 3%. We cover how to invest based on advice from Warren Buffett, and feature a new activist hedge fund inspired by the Oracle of Omaha with a sustainability twist. On the tax side, the wealthy can breathe a sigh of relief that Uncle Sam won’t be taking a bigger bite out of their fortunes after the election didn’t bring the blue wave some expected, though the K-shaped recovery is leaving blue-collar workers behind, raising red flags for state tax revenues. Read on for more tips and clarifications on deducting charitable donations and business expenses on next year’s taxes.
The Charitable Contribution Deduction Trap You Need To Avoid, by Bob Carlson
There are new tax breaks for charitable gifts in 2020, but filers still have some old traps to watch out for.
IRS Clarifies Stance On No Deductibility Of Expenses Paid With PPP Funds, by Brian Thompson
Small business owners can’t deduct expenses paid for with PPP funds if they reasonably believe the loan will be forgiven.
How The K-Shaped Recovery Affects The Taxes We Pay, by Liz Farmer
MORE FOR YOU
Sales tax revenue, which takes a heavier toll on lower-income Americans, is down nearly 1%, showing how the downturn is having a bigger impact on lower-wage workers.
Why The Wealthy Are Pleased With The Election Results, by Megan Gorman
Wealthy families were concerned that with the projected blue wave, the estate tax would change. The election results were a pleasant surprise.
How To Invest Money Based On Advice From Warren Buffett, by Rob Berger
Buffett offers the best advice you’ll ever get if your goal is to build wealth, and the good news for new investors is that it’s extremely easy to implement.
Lauren Taylor Wolfe and Christian Alejandro Asmar’s Impactive Capital borrows from Buffett’s buy-and-hold value book—but overlays a large amount of sustainability and inclusion.
Novel Graphic: Out Of the Woods: Lumber Soars During Covid Housing Boom
Retiring During A Bull Market: What’s A Safe Withdrawal Rate?, by William Baldwin
With asset prices so high, the old 4% drawdown formula is now hazardous. Try 3%.
Will Your Retirement Win Or Lose With Market Rotation?, by Chris Carosa
There’s a significant difference between market volatility and market rotation. Those who think they know better often fall for a classic trap.
7 Easy Ways To Maximize Black Friday Shopping Deals, by Rob Berger
Getting the most out of Black Friday sales is about more than just finding the lowest prices.
When Americans deck the halls this holiday season, their celebrations may look a little leaner than usual.
Although stores may keep their locations closed or limit their hours on Thanksgiving, their websites are always open.