Morning Download from Invincible Money 

Personal finance + economics + markets

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Good morning investors! It’s a new week and we’re here with the latest in personal finance, economics, and market to help you get smarter and wealthier.

Today we cover:

• The new iPhone just got better

• Meta gets a new price target

• How to save income tax money

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📊 Economy & News

New iPhone with a new charging port? (again)

Get ready to welcome the next iPhone with a new feature – a generic charging port.

According to reports, the iPhone 15 will feature the USB-C connector, which would replace the company’s proprietary port, the Lightning port, which has been a part of all iPhones since 2012. It’s about time!

This will be a major upgrade and one that users have been asking for. With this upgrade, experts believe Apple will be able to sell more iPhones, thus helping the stock.

Also, rumors are out that the new Apple Watch will have the ability to measure blood pressure, which would be a game changer.

Quick hits:

• X (formerly Twitter) users to lose the ability to block unwanted followers.

• Lamborghini enters the EV market.

• Chinese giant Evergrande files for bankruptcy protection.

📈 Stocks

S&P 500 4,369.71 (-0.015%)
DJIA 34,500.66 (0.075%)
NASDAQ 14,694.84 (-0.14%)
VIX 17.30 (-3.30%)
* Prices as of Aug 20th, 12:20 AM UTC

Meta gets an upgrade

Loop Capital raised Meta Platforms' target price from $365 to $375 with a 'buy' rating. This indicates an upside of over 32% from the previous close of $283.25.

Meta has been on a bullish run for a while, increasing 127% since the beginning of the year. However, it had taken a beating in the last few years, following the general stock market and Zuck’s delay in cutting staff, even after most tech companies had done so. He eventually did it last November (and March) and the stock started to rebound.

It, however, seems to be ready for a push with price hikes coming. Even Royal Bank of Canada recently reiterated its 'outperform' rating with a price target of $400.

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🔐 Crypto

Bitcoin $26,134.50 (-0.01%)
Ethereum $1,668.32 (-0.01%)
Total market cap $1..06 (-0.00%)
* Prices as of Aug 20th, 12:20 AM UTC

North Korean hackers continue to create havoc

North Korean hackers have made more than $200 million in cryptocurrency since the beginning of the year. This accounts for about 20% of all stolen crypto this year, according to a TRM Labs report.

Cryptocurrency theft has been on the rise and cybercriminals have stolen cryptos worth over $2 billion in the last five years.

“North Korean hackers use myriad techniques to launder stolen funds—from chain hopping to mixers—and then quickly cash out through accounts at exchanges that typically have lower KYC/AML controls in place,” said a TRM Labs spokesperson while talking to an online publication.

💵 Personal Finance

Do this to save income tax money - Part II

Let’s start from where we stopped last week. We are writing a series about how to save money on income taxes.

We talked about ‘tax credits’ in the previous newsletter, today we’ll talk about Health Savings Accounts and how they can help save tax money. These type of accounts are offered in the U.S., China, Singapore and South Africa.

Health Savings Accounts (HSAs)

HSAs can be defined as “savings accounts used in conjunction with a high-deductible health insurance policy that allows users to save money tax-free against medical expenses."

In simple words, these tax-deductible savings plans are used to put aside pre-tax money for future health-related expenses. The account is set up with a trustee with some terms and conditions.

There are presently no income limits but annual deductible limits exist and are typically revised every few years. For 2023, the limit is $1,500 for self-only coverage and $3,000 for family coverage.

Contribution limits

As mentioned earlier, contribution limits exist: $3,850 for self-only coverage and $7,750 for family coverage.

Employers can match contributions and the amount contributed by your employer is also included in these limits. However, individuals that are 55 or older can contribute an additional $1,000 with the option to make this contribution anytime during the year.

How do these accounts impact taxes

HSA contributions (by payroll or direct) are excluded from the employee’s taxable income, i.e.: are tax-deductible.

These contributions appear on Form 1040 as an adjustment to income. On the plus side, you're not required to take these contributions as an itemized deduction, which proves to be beneficial as itemized medical deductions come with certain limitations or caps. Also, since only 13.7% of taxpayers itemize, this can prove to be quite advantageous.

In addition, all sorts of earnings related to your HSA, including dividends and interest, are tax exempt and hence not included in your return.

Note: Contributions made by your employer cannot be claimed as a tax deduction; however, can be excluded from your gross income.

Withdrawing from your HSA

Withdrawals are tax-free given that they meet eligibility requirements as defined in IRS Publication 502, Medical and Dental Expenses. Examples include surgery costs, medical procedure costs, guide dogs, and birth control pills. On the plus side, money can be withdrawn anytime.

In addition, fuel spent traveling to and from the clinic or hospital is also included but items that aren't necessary such as gym membership and nutrient capsules aren't included.

We’ll continue our ‘how to save tax’ guide next week so stay tuned and let us know what else you'd like us to talk about by replying to this email.

Dig deeper

Check out this video for more about the benefits of an HSA.

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.