What we’re reading (12/23)
“What We’re Looking Forward To In 2022” (DealBook). “Americans are starting new businesses at the fastest pace in years. The pandemic helped end a multidecade slump in new start-ups that had both stumped and worried economists. This year, business applications in the U.S. are on track to surpass 5.4 million, up from 4.3 million last year. Why? Perhaps the pandemic gave people more time to think, and because the economic upheaval it wrought created opportunities for small new businesses. Technology has also made it easier to become an entrepreneur, and access to capital has expanded.”
“'Backdoor' Roth Restrictions Have Been Put On hold -- For Now” (CNN Business). “If you're a high earner who was scrambling to take advantage of a so-called backdoor Roth IRA or Roth 401(k) before new rules go into effect prohibiting you to do so, you just got a reprieve. Senator Joe Manchin's refusal to vote for the Build Back Better bill puts the future of that legislation in jeopardy. And, as a result, it also puts in jeopardy a revenue-raising provision in the bill that would restrict the ability of high-income savers to put money into Roth IRAs and Roth 401(k)s using a backdoor conversion method.”
“Wall Street Is So Desperate For Talent Some Firms Are Offering To Pay Out Rival Bankers' Year-End Bonuses” (Insider). “Wall Street's war for talent isn't letting up as the year winds down, as some investment banks are willing to pony up big money to poach bankers ahead of their year-end bonus payouts. It's a change from previous years, when hiring normally came to a standstill in the fourth quarter before talks resumed in January, recruiters said. ‘This year, people are giving out offers today in order to buy them out in 2022,’ Kevin Mahoney, a partner at Bay Street Advisors who leads the investment banking, private equity, and private credit practices, told Insider.”
“Should You Add Real Estate To Your Retirement Portfolio?” (Wall Street Journal). “Whether it is a physical property, such as an apartment building, or an investment in a real-estate investment trust or mutual fund, many financial-planning professionals say that income-producing real estate is an essential part of a well-performing retirement portfolio. However, while 75% of retirees have their money parked in bank accounts or CDs, just 12% own real estate other than their primary residence for investment, according to a survey conducted by the Transamerica Center for Retirement Studies between November 2020 and December 2020.”
“What Jack Dorsey’s Attack On Web3 Is Really About” (Slate). “Dorsey is essentially arguing that Web3 is doomed to break its promise of a more egalitarian and individualistic internet. Deep-pocketed venture capitalists, tech companies, and hedge funds are collectively pouring tens of billions of dollars into developing Web3 services and infrastructure. Just this month, a crypto firm called Hashed raised $200 million, Kraken Ventures Fund raised $65 million, and venture accelerator Brinc raised $130 million, all for Web3 investments.”
