It is logical to believe the higher standards for equal benefits in the ACA will prompt employers to seek other ways to fairly reward key employees, and spur innovative financial minds to invent new ways to meet this demand. Business owners who embrace these changes (and the subsequent innovations in employee benefits) may realize a distinct advantage in attracting and retaining talented and productive employees.
Many Americans construct their personal financial programs similar to the Goodyear building method; when times are good, they add something - an investment account, a life insurance policy, a rental property, etc. There isn't always a rhyme or reason to these decisions, and over time these "Goodyear households" acquire many financial products, but the end results are often out-of-sync and financially insufficient. Who is your financial "architect?"
Besides locking in a low rate, borrowers will also be considering: Is a 15-year or 30-year mortgage better for my situation? Assuming you can afford the monthly payments for either option, conventional financial wisdom favors the 15-year option, simply because it greatly reduces the amount of interest paid over the term of the loan. On a $250,000 loan at 4%, the numbers seem compelling. But wait...there’s more to consider.
In general, every American household would benefit from a sizable unrestricted savings account. And there are a few financial instruments that, depending on individual circumstances, can function as “less-restricted tax-favored savings.” Does your financial program include an unrestricted, tax-favored savings component?
Unresolved taxation for IRA accounts in an estate can create headaches for beneficiaries. Individual circumstances will ultimately determine which assets should be consumed or preserved, but strong consideration should be given to systematically liquidating IRAs during one’s lifetime rather than leaving them to beneficiaries.
The broad idea behind student loans has been "Don't worry about the cost, just get the degree. Your lifetime of increased earnings will allow you to figure out how to pay for it after you graduate." That idea is no longer valid. Poorly-structured student loan debt has the potential to impose a lifelong drag on your financial progress.