14 Hot Upcoming IPOs to Watch For in 2020 and 2021

14 Hot Upcoming IPOs to Watch For in 2020 and 2021

The initial public offering (IPO) market overcame a lightning-quick bear market in 2020 to bounce back to levels not seen since the dot-com boom. But there's still a laundry list of upcoming IPOs for 2020, and especially 2021, as a host of companies plan on tapping Wall Street for much-needed capital.

Some of the year's highlights? Business-to-business database operator ZoomInfo (ZI) helped open the floodgates in June with its $8.2 billion IPO. Game engine developer Unity (U) went public in September at a $13.7 billion valuation. Cloud infrastructure firm Snowflake (SNOW) hit the markets around the same time, marking the largest-ever software IPO at a valuation of $33.2 billion – an offering that got the attention of Warren Buffett.

You can thank a rapid snap-back rally and rock-bottom interest rates for rejuvenating Wall Street's wheeling and dealing. But there are other factors at play:

The mega-trend of digital transformation continues to thrust more companies into the public markets. Many companies realize that to remain competitive, they must adopt modern technology such as cloud computing, analytics an artificial intelligence – and that means a vibrant technology-sector IPO market in 2020 and 2021.Also, venture capital markets have been flush with cash for the past decade. They have spent that cash by investing in thousands of startups, which has allowed them to quickly scale. The next logical step: The IPO, which provides still more capital … and gives founders, employees and VCs a way to cash in. Thanks to pushes from the likes of online brokerage Robinhood, trading stocks has become free (or much cheaper) for most investors. That has helped spur larger numbers of young investors looking for high-growth opportunities, like IPO stocks.

In light of this, it seems like a good bet that the momentum will continue for initial public offerings.

Here, we look at some of the most anticipated upcoming IPOs for 2021, as well as the rest of 2020. Right now, that list includes potential blockbuster offerings such as the Nextdoor, DoorDash, Wish, Instacart and Airbnb IPOs.

SEE MORE 15 Mighty Mid-Cap Stocks to Buy for 2021 Data is as of Nov. 2. Where possible, we have provided reported expectations for timeli

Read more: https://www.kiplinger.com/investing/stocks/ipos/601672/hot-upcoming-ipos-to-watch-2021

How Holiday Shopping Happens in a Pandemic

How Holiday Shopping Happens in a Pandemic

David Muhlbaum: Like so many things in 2020, Black Friday and its associated discounts will be different this year. DealNews consumer analyst Julie Ramhold joins us to talk about how to find deals as we head into the holidays. We'll also talk about which of Joe Biden's campaign promises he will actually be able to achieve as president and dig deep to find things to be thankful for this year. That's all ahead on this episode of Your Money's Worth. Stick around.

Episode Length: 00:25:47Listen to previous Your Money's Worth episodes SUBSCRIBE: Apple Google Play Spotify Overcast RSS

David Muhlbaum: Welcome to Your Money's Worth. I'm kiplinger.com senior editor David Muhlbaum, joined by senior editor Sandy Block. Sandy, how are you?

Sandy Block: A little chilly but otherwise I'm good.

David Muhlbaum: Good. Well, last week we noted how the market was coming to grips with the prospect of a president elected Joe Biden. And now we're going to get into the nitty gritty of how much of his agenda he'll be able to accomplish and what that means to your money.

Sandy Block: Yeah, and there's still a lot of uncertainty about the Senate. That is, the next few months are going to be pretty wild, given that the exact number of senators who can vote in the narrowly divided Senate are going to move around a bit. One factor we saw this week was COVID, Iowa Senator Chuck Grassley got it, and so won't be around for a key vote on a new and controversial appointee to the Federal Reserve. The other is that both of the Senate seats in Georgia went to a runoff and that election day isn't until January of next year. If both of those races go to the Democrats, they'll get control of the Senate. Oh, and Mark Kelly, the Arizona Democrat who defeated Martha McSally for John McCain's Senate seat, he gets to start in December rather than January with the rest of the Congress.

David Muhlbaum: All right then, but we were going to talk about Biden.

Sandy Block: Right. And that's the thing. There's no way Biden's going to be able to make the big changes he has planned with a GOP Congress, raising taxes on people making more than $400,000 a year. R

Read more: https://www.kiplinger.com/personal-finance/shopping/601806/how-holiday-shopping-happens-in-a-pandemic

Growing the Family Business

Growing the Family BusinessProfile Who: Larkin Martin, 57 What: Farm owner and manager Where: Courtland, Ala.

How big is your farming operation? We have about 12 employees who help farm owned and rented land. I am the seventh generation of my family to manage a continuous operation. We grow cotton, corn, soybeans and wheat, although the size and crop mix has changed many times over the years.

SEE MORE What Farmer Joe Can Teach Us About Investing

Who are your buyers? The corn we raise tends to have a very local market, to the people who supply the poultry industry. Most of our wheat is barged out to New Orleans to be exported. And a lot of cotton is exported in raw form to manufacturers of yarns all over the world. Asia—especially China—is the largest region of textile manufacturing. We sell soybeans mostly to a big industrial facility close to here.

Has the pandemic affected you? Farm work was deemed essential, so we’ve had to change very little about our operational procedures. And the nature of the work is socially distant—although I’ve had a member of my family come down with the virus, and I had to isolate from the employees. Luckily, we haven’t had an employee come down with the virus so far. But the pandemic disrupted trade and supply-chain patterns that were already under strain. Preceding COVID, we had a downturn in prices for most of the commodities we raise. And in some cases, this downturn was exacerbated by COVID’s impacts on trade.

Did tariffs imposed by the Trump ad­ministration affect your production in recent years? The tariffs disrupted trade patterns—significantly with China. And China’s purchases of U.S. commodities declined dramatically in response to them. So there was a price downturn. But recently, China’s purchases have come back significantly in volume, and there has been a positive price impact.

Have farm bill programs supported your operations? They have helped to offset the negative implications of the price declines. While we’re grateful for the taxpayer assistance, we would expect that cannot continue. I’d much prefer to have prices that offer profitability for our operation, and most farmers would probably agree.

Has severe weather like we’ve see

Read more: https://www.kiplinger.com/personal-finance/careers/career-paths/601776/growing-the-family-business

Roth IRA Conversions: Pay Now, Live Tax-Free Later

Roth IRA Conversions: Pay Now, Live Tax-Free Later

There was a lot of discussion around tax increases in the run-up to the election.  On one side, raising taxes on corporations and on ultra-high net worth individuals.  The other side focusing on foreign taxes and tariffs.  The one thing everyone can agree on is that taxes are going to go up in the future. 

SEE MORE 3 Reasons to Wait Until 70 to Claim Social Security Benefits

The United States has over $27 TRILLION in debt, which is climbing rapidly. The government has issued billions in Coronavirus stimulus packages, and unemployment hit 13% in May, the second highest rate since World War II. We also have a Social Security system that is quickly running out of money.  There is a clear need for more tax dollars. 

No matter where the focus (corporations, ultra-high net worth individuals or foreign countries), there is always a tax burden that falls on everyday Americans.  It is fair to assume that burden will likely grow in the future. So how can you set yourself up now for what may lie ahead?

How Do Roth IRA Conversions Work?

Roth conversions are the best way to take a little pain today to give yourself options in the future.  A Roth conversion is when you take money out of a traditional IRA and transfer it directly into a Roth IRA.  When you do this, the amount converted IS taxable.  You pay income tax on the entire amount moved into your Roth IRA. 

Once it is in the Roth IRA, the growth is tax-free.  As long as you have had the account for five years and you are 59½ or older, you can take the entire amount of a Roth IRA out tax-free. 

What Are the Benefits? Tax-Free Growth

If we are under the assumption that taxes will go up in the future, it makes sense to pay taxes on some of your money now to avoid taxes at higher rates in the future. For example, according to U.S. Census Bureau, the median household income in 2019 was $65,712.  The standard deduction this year for a married filing jointly household is $24,800.  That leaves an adjusted income amount of $40,912.  Based on 2020 tax brackets (see chart below), this places the median household in the 12% tax bracket.  This bracket goes up to $80,250 worth of income. 

SEE MORE Oops! A Surprising Factor Retirees Forget to Plan for

So, there is room for nearly another $40,000 before the med

Read more: https://www.kiplinger.com/retirement/retirement-plans/roth-iras/601805/roth-ira-conversions-pay-now-live-tax-free-later

Your Guide to Roth Conversions

Your Guide to Roth Conversions

Converting a traditional IRA to a Roth can shield your retirement savings from future tax increases, but there are pitfalls and trapdoors, too. You’ll owe taxes on a conversion, and the up-front tax bill could be higher than you expected—particularly if the conversion pushes you into a higher tax bracket. If your income tax rate drops significantly after you retire, the tax advantages could be modest or nonexistent. And as with any financial transaction that intersects with the tax code, you—or your financial adviser—must comply with multiple rules and regulations to avoid running afoul of the IRS.

SEE MORE Who Should Consider a Roth IRA – and Why Now?

Because many people, including retirees, believe taxes will rise in the future, Roth conversions are “trendy,” says Evan Beach, a certified financial planner with Campbell Wealth Management, in Alexandria, Va. “But you see people get over­enthusiastic about it, and they don’t know what they’re doing.”

Until recently, if you converted an IRA to a Roth, the law let you have a do-over. Before 2018, taxpayers who converted an IRA to a Roth had until the tax-extension deadline—typically October 15—of the year following the year they converted to change their minds. If you discovered after the fact that you couldn’t pay taxes on the conversion, you could simply put the money back into your traditional IRA and go about your business. Likewise, if the value of your IRA dropped significantly after you converted, you could undo the conversion and avoid paying taxes on phantom income.

The Tax Cuts and Jobs Act eliminated this option, so make sure you’re prepared to pay the tax bill before you take the leap. Fortunately, nothing in the law says you must convert your entire IRA at once, and for many people, a series of partial conversions over several years is one of the most effective ways to avoid regrets.

The Sweet Spot for Conversions

A refresher: When you convert money in a traditional IRA to a Roth, you must pay taxes on the amount you convert (although part of the conversion will be tax-free if you’ve made nondeductible contributions to your IRA). There are no age or income restrictions on Roth conversions.

Once you’ve converted, all withdrawals are tax-free as long as you are 59½ or older and have owned a Roth for at le

Read more: https://www.kiplinger.com/retirement/retirement-plans/roth-iras/601774/your-guide-to-roth-conversions

How to Help Your Family Wealth Last for Generations

How to Help Your Family Wealth Last for Generations

The Chinese proverb “rags to rags in three generations” says that family wealth does not last for three generations. The first generation makes the money, the second spends it and the third sees none of the wealth.

The Chinese aren’t the only ones who acknowledge this as a problem. In the U.S. it is referenced as “shirtsleeves to shirtsleeves in three generations,” and in Japan it’s “rice paddies to rice paddies in three generations.”

SEE MORE Should I Start Gifting Money (or Even My House) to My Kids?

These sayings contradict what I hear clients tell me they want their money doing for them after death. After nearly three decades of assisting families with estate planning, what I have found is that the majority have a deep desire to leave a legacy for their family. The idea of leaving a thumbprint on future generations seems to give meaning to what people spend a lifetime accumulating.

So the question is, if people have an inherent desire to leave a legacy for their families, why is there such a high failure rate among generational wealth? I believe the answer lies in how estate planning is defined and how it is approached.

A common definition goes like this: Estate planning is the process of designating who will receive your assets and handle your responsibilities after your death or incapacitation. The very definition of estate planning omits any mention of generational intent. That’s a problem. Once the first generation passes away, the estate plan has essentially fulfilled its purpose once the second generation has access to the estate.

The idea for generational wealth is not new. Two of the most referenced figures related to generational wealth are Cornelius Vanderbilt — whose famous last words to his family were, ''Keep the money together” —  and John D. Rockefeller. The Vanderbilt’s didn’t follow their patriarch’s advice, and the family fortune dwindled away, but the Rockefellers heeded the advice and are now in their seventh generation of wealth with billions in assets.  There is more to the story that you can listen to here.

The Making of a Generational Plan

Leaving a legacy necessitates a written strategy designed to equip future generations with the information they need to carry out the plans set before them. This written

Read more: https://www.kiplinger.com/retirement/estate-planning/601798/how-to-help-your-family-wealth-last-for-generations

Peering Past the Pandemic

Peering Past the Pandemic

My column on the joys of being retired (Rethinking Retirement, "The Joys of Being Retired") drew a slew of responses—a couple of which were pretty grumpy. “Your column came from the la-la land of before the pandemic,” writes Scott Bigelow. “Lunches with the girls, volunteering, travel, sometimes even grandchildren are things that went away.” And from Kevin Swan: “This article is out of touch with what is happening in the world today. All the businesses you talk about that people who are retired have more time to enjoy—theaters, gyms, restaurants, to name a few—have been forced to close.”

SEE MORE When Only One Spouse Retires

But most of the responses were more upbeat. “I was happy to read about the numerous joys of other retired readers and chuckled at some of the comments,” says Louis Pinneri. “Our retirement activities may be temporarily restricted, but I very much look forward to the resumption of freely doing what we enjoy.”  

I’m with you, Mr. Pinneri. That was my intention in writing the column. Yes, this year has been an annus horribilis as far as the pandemic is concerned, but I wanted to look beyond COVID-19 to the time (soon, we hope) when lunches with the girls (or guys), volunteering and travel will resume. Many restaurants, gyms and other businesses have reopened, treatments have improved, and vaccines are on track.

My husband and I declared an end to our personal lockdown over the summer. Yes, we continued to follow all the rules (masks, distancing, avoiding large gatherings). But within those constraints, we were able to buy a new car and hit the road to visit scattered family members and grandchildren—including a brand new grandson—enjoy our annual family trip to the beach, dine al fresco, and return to outdoor exercise at our local YMCA. Finally, in September, we made the trip to Acadia National Park that we had been forced to postpone in May. And it all felt so refreshingly normal.

Other readers must also have appreciated a break, because despite the current circumstances, they continued to share their retirement joys. “I especially loved the last quote in your story from the man who likes to listen to morning traffic reports on rainy and snowy days,” writes Arthur Buonopane. “Even better is listening to traffic reports on my way to the golf course.”

Read more: https://www.kiplinger.com/retirement/happy-retirement/601773/peering-past-the-pandemic

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