While asking yourself these questions, it is important to consider the impact of deferring. For example, it is usually best to defer for at least seven years to take full advantage of tax-deferred growth. While there are no federal limits to contributions to NQDC plans generally, a company’s particular plan may impose certain limits on
James Lauritz | Getty Images In the absence of a coherent strategy, multiple advisors may put a client into the same investment multiple times. Tax-related decisions may also suffer. In addition, this strategy may cause advisors to compete for all the assets and take undue risk to outperform the competition “People have money spread all
Like other high-dividend-paying stocks, REITs are largely sensitive to rising interest rates as their yields start to look relatively less attractive versus fixed-income alternatives. With rates again trending up, it could be a bumpy ride for the REIT market going forward. It also might be a great opportunity to get into the real estate market.
You have one source of guaranteed income in retirement. Try not to mess it up. Though Social Security replaces up to 40 percent of preretirement income for average earners, misconceptions about how the program works continue to persist. Indeed, nearly 3 in 10 retirees said their Social Security payments are less than expected, according to
If you are either a U.S. citizen or a long-term resident, you expatriated on or after June 17, 2008, and any of the three stipulations below apply to you, you are a “covered expatriate” and will be subject to the exit tax. 1. The tax liability test. Your average annual net income tax for the
If you make more money, will you be happier because you will be able to afford more things? Research shows this isn’t true. A study conducted by Daniel Kahneman and Angus Deaton analyzed data from more than 450,000 responses to the Gallup-Healthways Well-Being Index. They studied the happiness of people at different income levels. At
“They’ve had nothing left over to deal with other increased costs,” said Mary Johnson, Social Security and Medicare policy analyst for the Senior Citizens League, which surveyed 1,116 retirees across the country earlier this year. The reason for the premiums devouring all or much of the extra Social Security amount is due largely to the
When she graduated, she was eager to wipe out her education debt. She decided to withdraw $10,000 from her 401(k) plan. After struggling to find a high-paying job, she wasn’t able to free herself from her student loans as fast as she had hoped. Meanwhile, the balance kept growing, thanks to interest. When she did
Here are six options that would-be rollover Jedis may want to keep in mind for their individual situations. 1. Roll over into a new individual retirement account. Transferring funds from a previous 401(k) into a new IRA preserves the most investing flexibility, advisors say. Company plans may limit options to a handful of mutual funds.
You could get a shock on your credit card statements after rates rise, when your annual percentage rate jumps two or three percentage points. As such, that debt will cost you more, and you will want to adjust your monthly budget to accommodate that, Jenkin said. Or better yet, pay down those debts before rates
Boomers are more likely than other generations to take risks by investing some or all their retirement funds into starting their own business after leaving a corporate job, and they seek new and interesting ways to spend their retirement money that may or may not produce an income stream to help fund expensive retirement activities.
Last year the JPMorgan Global Emerging Market Bond index had a total return of 9.1 percent. “We believe U.S. investors should have an allocation to emerging market bonds,” said Pablo Goldberg, a senior fixed-income strategist for BlackRock, which manages more than $24 billion in assets in a variety of emerging market bond funds. “They have
However, corrections offer an opportunity to evaluate risk and how well positioned they are for an eventual bear market. By comparing the intensity, recovery and duration of corrections and bear markets and their impacts on investors, we can assess where risk management efforts should focus. Investing opens investors up to the possibility of losses —
“Whether you stuck it out through the crisis or you bought in the last five years, many homeowners are sitting pretty when it comes to home equity,” said Daren Blomquist, senior vice president of communications at Attom Data Solutions. “It’s a good time to leverage that.” Borrowing against home equity can be a convenient way
Buttressing optimism for the category is its immunity from the market’s trade-war fears: Small companies don’t tend to export much. Another factor is the tendency for economic expansion to increase earnings more down cap than up. Further, the delayed benefits of the tax cut should help domestic-centric companies proportionately more than multinationals. Small caps, which
Many investors wonder when the right time will be to put some money in bitcoin. It’s a question that financial advisors increasingly hear these days. Yet advisors, for the most part, don’t recommend investing in digital currency, or in the investment vehicles that have cropped up around it, at all. In fact, earlier this year,
Not surprising is the fact that the amount of money retirees bring in greatly determines whether or not they’re comfortable, Gallup found. More than half of those who have an income of $30,000 a year or less say they’re uncomfortable, compared with just 2 percent of retirees who make $75,000 or more. To be sure,
When you mull over who could fill that role, consider who has good judgement and would know how to handle the responsibility — and respect your privacy — if they have to step in. “Don’t just pick your oldest child because the child is your oldest,” Alaimo said. In fact, she said, the person doesn’t
Defined benefit plans may be especially interesting now to certain entrepreneurs, investors and professional practitioners with earnings too high to take advantage of the QBI, said Timothy Speiss, partner in charge of EisnerAmper Personal Wealth Advisors. “It’s very significant, and the 2017 tax legislation is important,” Speiss said. The Tax Cuts and Jobs Act passed
“Active bond fund managers have been able to increase their returns [over indexes], by adding credit risk to their portfolios, especially over the last five years,” said Alex Bryan, director of passive strategies research at research firm Morningstar. “Anytime volatility picks up, you’ll see more flows into Treasurys, and active managers taking on more risk