The dangers of coastal living
Here are three of the week's top pieces of financial advice, gathered from around the web:
A warning on coastal properties
Prices are falling for seaside houses as sea levels rise and storms strengthen, said Ed Leefeldt at CBS News. Domestic properties located close to beaches that are exposed to rising water levels sell at a 7 percent discount compared with homes that are "just as close to the water," but more protected. The discount, according to a study from the Journal of Financial Economics, is "driven by sophisticated buyers and communities worried about the long-term effect of global warming." That global-warming discount seems to be figured into the price of about a third of coastal homes; the effect is greatest in areas of high income and education. Economists warn that a major flood could cause a "wealth shock" with a sudden drop in coastal values.
Last chance to report foreign assets
"If you're holding a bank account or an investment account overseas, you're running out of time to come clean to the IRS," said Darla Mercado at CNBC. On Sept. 28, the Internal Revenue Service is pulling the shutters down on its voluntary disclosure program for those who have funds held in foreign bank accounts. That means U.S. citizens with assets in foreign accounts "who have failed to participate could be subject to large fines, penalties, and criminal prosecution." The program was launched back in 2009 and led to more than 56,000 taxpayers reporting in — and eventually forking out $11.1 billion in back taxes, interest, and penalties. By law, Americans are required to report overseas accounts to the IRS and Treasury. "Frustration over those requirements — and the related cost of remaining in compliance — has led some citizens abroad to renounce their citizenship."
Downside of summer jobs
"Working more hours as a student may backfire" if your family has qualified for financial aid, said Gail MarksJarvis at Reuters. Roughly 78 percent of college students spend a portion of the year working, and 45 percent have jobs year-round. An estimated 58 percent of freshmen depend on outside work. That makes sense: Tuition, room and board, and other costs can add up to more than $30,000 at public colleges and as much as $70,000 at private universities. But the financial aid formula dings students who earn more than $7,000 a year. For instance, a student who had already earned $7,000 for 2018 and tried to fit in another $3,000 in the summer could lose about $1,300 in financial aid.