How Impatience Hurts Retirement Saving
From 1993-2012, the S&P 500 achieved a (compound) annual return of 8.2%. Across the same period, the average investor in U.S. stock funds got only a 4.3% return. What accounts for the difference?
The FED Perturbs the Markets
On June 19, the Federal Reserve let investors know that “easing without end” will eventually end, perhaps as early as mid-2014. Wall Street had anticipated such a signal, but investors still reacted emotionally to the news, with the Dow Jones Industrial Average ceding all of its May and June gains in less than two market days. (The index fell 206 points on June 19 and 354 points on June 20.) Bears see the air quickly coming out of the rally; bulls think the rally will pause during the turbulence, then resume.
Where Did Inflation Go?
QE1 and QE2 did boost inflation in the short-term; in fact, one of the things that prompted QE2 was the Fed’s concern about deflation in 2010. Yet inflation has lessened since QE3 started.
Understanding the Markets
If you stopped most people on the street, you’ll find they have only a hazy understanding of what most financial and economic terms signify or reference. If you’ve ever been left dizzy by the jargon of the financial world, here is a brief article that may help clarify some of the arcana.
Living Longer - June "Outside the Box"
Ever wonder if there is a secret to happiness? Dan Buettner is a longevity expert who has long studied what it takes to live to be 100. Not surprisingly, he’s found that...
Charitable IRA Gift
In 2013, you can once again donate up to $100k to a charity tax-free. The possible benefits are threefold...
Filial Support Laws
Ever hear of “filial piety”? How about “filial support”? Some attorneys and retirement planners are wondering if more nursing homes will use these laws to force adult children to pay their parents’ long term care bills...
What Happened to "Sell in May"??
An old belief has lingered on Wall Street for years – the belief that investors should get out of stocks in May and get back into stocks in October. But here we are in May – and while...
7 Retirement Assumptions to Reassess
What makes financial sense for some may not make sense for you.
How LTC Insurance Can Help Protect Your Assets
As baby boomers leave their careers behind, long term care insurance will become very important in their financial strategies. The reasons to get an LTC policy after age 50 are very compelling.
Retirement Through Your Eyes
If you are like many baby boomers, your view of retirement is likely pragmatic compared to that of your parents. That doesn’t mean you have to have a “plain vanilla” tomorrow. Even if your retirement savings are not as great as you would prefer, you still have great potential to design the life you want. With that in mind, here are some things to think about
The Right Beneficiary
Here’s a simple financial question: who is the beneficiary of your IRA? How about your 401(k), life insurance policy, or annuity? You may be able to answer such a question quickly and easily. Or you may be saying, “You know … I’m not totally sure.” Whatever your answer, it is smart to periodically review your beneficiary designations
A Roth IRA's Many Benefits
The key argument for going Roth can be summed up in a sentence: Paying taxes on your retirement contributions today is better than paying taxes on your retirement savings tomorrow.
Budgeting in Retirement
You won’t be able to withdraw an unlimited amount of money in retirement, so a retirement budget is a necessity. Some retirees forego one, only to regret it later.
IRA Rollovers for Lump-Sum Pension Payouts
If you are taking a lump sum pension payout from your former employer, what is the next step for that money? It will be integral to your retirement; how can you make it work harder for you?
IRA Contribution Limits Rise for 2013
In 2013, you can contribute up to $5,500 to your Roth or traditional IRA. If you will be 50 or older by the end of 2013, your contribution limit is actually $6,500 this year thanks to the IRS’s “catch-up” provision. The new limits represent a $500 increase from 2012 levels
IRA Deadlines are Approaching
Many of us associate April with taxes. We should also associate it with IRAs, for April is the month with the deadlines for IRA contributions and mandatory IRA withdrawals.
Bad Money Habits to Break in 2013
Many people fall into the same financial behavior patterns year after year. If you sometimes succumb to these financial tendencies, the New Year is as good an occasion as any to alter your behavior.
The Fiscal Cliff Deal & Your Taxes
What will change (and won’t change) as a result of the new legislation - here are the major details in the bill, which in the big picture would raise taxes by roughly $600 billion across the next ten years.