This Week in Your Wallet: How Today’s Election Could Impact Your Money
Did you vote yet? If you didn’t, it’s not too late. The political pundits and pollsters are predicting the Senate will go to the Republican Party (which will give it majorities in both Houses of Congress). If that scenario proves true, you’ll likely feel it in your wallet. How?
For starters, MONEY reports that it looks like minimum wage is on its way up. It’s been a hot topic this election cycle, and a handful of states (Alaska, Arkansas, Nebraska and South Dakota) have minimum wage increases on their ballots. They all look likely to pass, which would be in keeping with what the country seems to want. Over 70 percent of Americans would like a $10.10 federal minimum wage, according to a recent Pew study.
Some likely reforms to the Affordable Care Act – aka Obamacare – may also make your financial life a little easier. Despite the GOP’s resistance to fully support the ACA, there does seem to be bipartisan support for a handful of changes to the law. Among them: Moving the open enrollment period (which starts next week on November 15 and runs through February 15) closer to tax time in April. This would make the process of applying for a subsidy a little clearer. Right now you have to estimate the next year’s income to determine how much you’ll receive. Underestimate, however, and you have to pay a portion of it back come tax time. The process is an expensive headache (you can see for yourself here), especially for low-income individuals and families, who are more likely to go in and out of different jobs. So this would be a welcome fix. The employer mandate may also have enough support on both sides of the aisle to make it go away.
And for more on open enrollment, head over to my Fortune column which pulls together tips for making the right decision no matter where you’re shopping for healthcare – be it the exchanges, Medicare or through your employer. But whatever you do, don’t go without coverage next year: the penalties for being uninsured are rising substantially in 2015. (For single adults, the penalty jumps from $95 to $325, and for families it’s $285 to $975.) Insurancequotes.com has an Obamacare penalty calculator you can use to see how much you could be on the hook for.
And in other news…
Gender and the market
Are men more emotional about money than women? If you ask around, I’m sure many people would be quick to say, ummmm, no. Financial planner Manisha Thakor begs to disagree. At least that’s what she told Reuters’ Lauren Young when the two sat down for an on-camera discussion on how emotions can make or break an investor. Why are men more likely to get more emotionally riled? Thakor says it’s because they’re left-lane investors. “If you’re on a freeway and you’re driving around, the person in the left lane is impatient and moving back and forth, trying to find that incremental average,” says Thakor. Whereas – more often – she finds women driving in the right lane, going the speed limit with their seat belts on. They’re more likely to be patient and stay calm if there’s a bump in the road.
Thakor says the best thing an investor can do (regardless of gender) is have a written investment policy statement – a document summarizing your goals and actionable steps to achieve them. This policy statement serves as a roadmap. That way, if a road is washed out or impassable, you have this map showing where you want to go and — if necessary — how to take a different route to get there. She says people feel so uncomfortable with the market’s volatility, because they don’t think long-term — and more importantly, they don’t have a written plan.
Still missing your refund?
I’m sure after Tax Day you do your best to not think about taxes, but did you ever receive your refund? Some checks don’t make it into mailboxes, because of incorrect addresses or other mailing mishaps. If that’s you, then the Wall Street Journal says to start your search by heading over to the Internal Revenue Service website and click on “Where’s My Refund?” It’ll walk you through how to find your missing money. To avoid this problem in the future, try signing up for direct deposit. (Over 75 percent of Americans opted for this last year.) And if you need to file an “amended” federal income-tax return using the 1040X form, then don’t expect the usual 21-day turnaround for your new refund. Amended returns can take up to three weeks to get into their system, and then another 12 weeks to get back to you. As they say, it’ll be better late than never.
Have a great week,
Jean
