When the term “retirement planning” is used, most think of the financial aspects of retirement myopically through a material lens. However, the social, emotional, and physiological stresses that transitioning into and throughout retirement impose are much more difficult to deal with.
While well-disciplined diversification helps in the vast majority of markets, during the global financial crisis investors learned that diversification among many asset classes failed to provide expected benefits.
Anyone studying the long-run history of American business cannot help but observe how many of the prominent firms of one era fail to make it to the next. Market economies are characterized not only by intense competition but also by disruptive change. Sometimes a company’s toughest competitor turns out to be a firm it has never heard of selling a product or service that didn’t exist until recently.
Equity markets around the world had their worst quarter since the end of 2008, as investors reacted negatively to the sovereign debt problems in Europe, the budget stalemate in the US, and poor economic data in most developed countries and in some large emerging countries such as China.
With the strained balance sheets of governments in the Europe and US being the focus of so much media and market attention in recent times, it is understandable that investors would fret about the credit risks of putting their money into sovereign bonds. Countries can and have defaulted on their debt.
Recently the stock market has taken a sharp decline. The depressed prices make it a great time to consider converting some of your tax-deferred assets in your IRA or similar retirement plans into a tax-free Roth IRA. The idea is that since prices have quickly and sharply declined, by converting now, tax will be paid on the depressed amount and therefore less tax will be due. As the market recovers, the gains will occur in the Roth IRA and be tax free.
Most investors do not pay nearly enough attention to the tax efficiency of their investment plans. This unnecessarily increases taxes paid and causes a significant tax-drag on investment portfolios. Minimizing taxes on investment assets can be effectively managed to produce greater after-tax wealth and increase the probability of achieving investment objectives. Asset location strategies are one of the key strategies to accomplish these objectives.
Dividend investing is a decades-old idea that many investors continue to follow today. Many think: the higher the dividend and the longer the company has been paying, the better.
Without the return calculation investing tends to be a black box, lacking essential feedback mechanisms to monitor progress towards investment objectives.
Most investors do not have a clear cut strategy for providing income in and throughout retirement. With interest rates near zero today, providing lifestyle-sustaining income is quite challenging.
When the term “retirement planning” is used, most think of the financial aspects of retirement myopically through a material lens. However, the social, emotional, and physiological stresses that transitioning into and throughout retirement impose are much more difficult to deal with.
While well-disciplined diversification helps in the vast majority of markets, during the global financial crisis investors learned that diversification among many asset classes failed to provide expected benefits.
Anyone studying the long-run history of American business cannot help but observe how many of the prominent firms of one era fail to make it to the next. Market economies are characterized not only by intense competition but also by disruptive change. Sometimes a company’s toughest competitor turns out to be a firm it has never heard of selling a product or service that didn’t exist until recently.
Equity markets around the world had their worst quarter since the end of 2008, as investors reacted negatively to the sovereign debt problems in Europe, the budget stalemate in the US, and poor economic data in most developed countries and in some large emerging countries such as China.
With the strained balance sheets of governments in the Europe and US being the focus of so much media and market attention in recent times, it is understandable that investors would fret about the credit risks of putting their money into sovereign bonds. Countries can and have defaulted on their debt.
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