Blog
Are You Too Young for Long-Term Care Insurance?
Tuesday, May 14th, 2013
The easy answer is probably not! After all, you can worry about getting older in your 20s or you can suffer the consequences of that lack of foresight in your 60s. Let’s face it, the younger we are the less we think about what’s going to happen to us during or nearing retirement. However, this may be a silly risk and one not worth taking.
The fact of the matter is that LTC insurance is something that nearly all of us are going to need. Whether we spend our later years in a nursing home, an assisted-living facility or live them out in our own home, we are probably going to need some sort of care.
What long-term care covers:
Long-term care insurance is specifically designed to fill in the gaps between what your care costs and what is actually available to pay for those costs. Keep in mind that Medicaid is probably going to …
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7 Retirement Assumptions Reassessed
Monday, April 29th, 2013
There is no “typical” retirement. Many baby boomers want one and believe that they will have one, and their futures may indeed unfold as planned. For others, the story will be different. Just as there is no routine retirement, there are no rote financial moves that should be made before or during this phase of life, and no universal truths about the retirement experience.
Here are some commonly held assumptions – suppositions that may or may not prove true for you, depending on your financial and lifestyle circumstances.
#1. You should take Social Security as late as possible. Generally speaking, this is a smart move. If you were born in the years from 1943-1954, your monthly benefit will be 25% smaller if you claim Social Security at 62 instead of your “full” retirement age of 66. If you wait until 70 to take Social Security, your monthly benefit will be 32% larger than if you had taken it at 66.
So why would anyone apply for Social Security …
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Preventing Retirement Mistakes: 6 Key Dates To Remember
Friday, April 12th, 2013
By the time most people hit age 50, they have been dreaming of their retirement as some far-off date that they knew was coming. The mid-century mark is often a wake-up call reminding them to put the pedal to the metal, and to make sure they have covered every possible angle when it comes to their retirement plans. Too many learn from experience that a few errors in judgment, or a failure to plan can result in mistakes that cost them valuable retirement dollars. Retirement mistakes can be prevented by keeping a few key dates in mind as you reach those golden years.
Age: 55
People who leave their job for one reason or other can elect to take funds from their 401 (k) without penalty if they are age 55 or older. This “separation from service” clause comes along with a requirement to pay income taxes on the funds, but rolling funds over into another retirement plan is often allowed, keeping the tax man away from …
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What To Do When a Family Member Dies
Wednesday, March 27th, 2013
A financial checklist for the most difficult of times.
The passing of a loved one irrevocably alters family life. After a death, there is so much to attend to that addressing financial matters related to a family member’s passing may be put on hold. This should be done, though, and it is better to do it sooner rather than later. Here, then, is a list of what commonly needs to be looked after.
Request copies of the death certificate. Depending on where you live, you have two or three places to turn to for this document. You can phone, email or personally visit the office of the county recorder (or county clerk, as the term may be). You can alternately contact your state’s vital records department (sometimes called the state registrar or department of health), though it may take a little longer to get the document this way. In addition, some large and mid-sized cities maintain their own registrars of births and deaths.
Call advisors, …
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Saving for Retirement: Don’t be Afraid of Stocks
Wednesday, March 20th, 2013
If you’ve been reluctant to invest in the stock market, you’re not alone. Thanks to the credit crisis of 2008 and doomsday headlines, the volatility of the stock market over the last few years has left many investors running for cover and feeling like investing any portion of the retirement nest egg is too risky. The truth is, though, if you are saving for retirement, avoiding stocks completely is not a smart move.
According to Money magazine, if you had invested $10,000 in a money-market account 20 years ago, you’d have almost $19,000 today. That’s a safe bet, but not a tremendous amount of growth. Avoiding retirement strategies that involve stock investment can drastically affect your standard of living upon retirement. On the other hand, no one can give you 100 percent assurance that stock investments will flourish. How can you strike a balance? Consider the following tips.
- Keep it simple. Trying to predict the unpredictable will lead to disappointment. Those who …
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The Latest Info On Social Security
Monday, February 25th, 2013
Social Security benefits have increased 1.7% this year. This doesn’t come close to the 3.6% boost retirees got for 2012, but it does mark the second straight annual cost-of-living adjustment. (After a hefty 5.8% COLA for 2009, there were no COLAs for 2010 or 2011).
So for 2013, the average monthly Social Security payment going to a single retiree is $1,261 ($21 larger than last year). The average retired couple gets $2,048 per month in 2013 (a $34 monthly increase). A single retiree claiming benefits at the full retirement age of 66 this year could get a maximum monthly Social Security payment of $2,533.
Of course, COLAs have also occurred to Medicare premiums and the payroll tax ceiling for employees.
However, Medicare premiums are eating into that COLA. The good news for 2013 is that Part B premiums didn’t rise as much as some analysts expected. Medicare’s trustees, for example, anticipated a $9 monthly increase in these premiums. Instead, the increase was slightly more than $5. Part B …
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Common Deductions Taxpayers Overlook
Tuesday, February 12th, 2013
Every year, taxpayers leave money on the table. They don’t mean to, but as a result of oversight, they miss some great chances for federal income tax deductions.
While the IRS has occasionally fixed taxpayer mistakes in the past for taxpayer benefit (as was the case when some filers ignored the Making Work Pay Credit), you can’t count on such benevolence. As a reminder, here are some potential tax breaks that often go unnoticed – and this is by no means the whole list.
Expenses related to a job search. Did you find a new job in the same line of work in 2012? If you itemize, you can deduct the job-hunting costs as miscellaneous expenses. The deductions can’t surpass 2% of your adjusted gross income. Even if you didn’t land a new job in 2012, you can still write off qualified job search expenses. Many expenses qualify: overnight lodging, mileage, cab fares, resume printing, headhunter fees and more. Didn’t keep track of these expenses? You and …
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The Right Beneficiary
Wednesday, February 6th, 2013
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.
Your choices may need to change with the times. When did you open your first IRA? When did you buy your life insurance policy? Was it back in the Eighties? Are you still living in the same home and working at the same job as you did back then? Have your priorities changed a bit – perhaps more than a bit?
While your beneficiary choices may seem obvious and rock-solid when you initially make them, time has a way of altering things. In a stretch of five or ten years, some major changes can occur in your life – and …
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Is Now The Time To Refinance Your Mortgage?
Monday, January 28th, 2013
Mortgage rates are still low. The earliest numbers from 2013 have remained lower than they were this time last year, leading a number of homeowners to consider (and re-consider) their options.
On January 17, interest rates on 30-year FRMs dropped to 3.38%. This is down 0.5% from a year ago at this time. Many have already taken advantage; the Mortgage Bankers Association reported a 15.2% increase in mortgage loan applications last week, while refinancing saw a 15% bump from the previous week. In fact, 82% of all applications were attempts to refinance.
With interest rates down across the board, it’s easy to see why homeowners still so low: Freddie Mac is reporting 15-year FRMs are down to 2.66%, while 5/1-year ARMs and 1-year ARMs were down to 2.67%. A year ago, the rates were 3.17%, 2.82%, and 2.76%, respectively.
Keep your eye on the big picture. While it might seem to your advantage to take your interest …
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The Debt Ceiling Dilemma
Monday, January 21st, 2013
Global investors watch America anxiously. In late December, the U.S. technically reached its debt ceiling of approximately $16.4 trillion, with the federal government taking what Treasury Secretary Timothy Geithner called “extraordinary measures” to avert a default.
Even as House GOP leaders announced plans Friday to approve a three-month increase in the federal debt limit, tension remains – and that tension could provoke a debt ceiling battle on Capitol Hill reminiscent of the impasse of 2011 later this year.
President Obama has again presented a debt ceiling hike as an essential move needed to pay America’s bills. House Republicans do not want to see a long-term increase in the debt limit without corresponding spending cuts, and some conservatives have characterized the Obama administration’s warnings as more posturing than fact.
A new plan to deal with critical fiscal deadlines. Sometime between February 15 and March 15, the federal government’s borrowing capacity will (in theory) be exhausted. March 1 now represents the start of the “sequester” – the automatic spending cuts …
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IRA Contribution Limits Rise for 2013
Monday, January 14th, 2013
Time to boost your IRA balance. 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.
January is an ideal time to max out your annual IRA contribution. If you are in the habit of making a single annual contribution to your IRA rather than monthly or quarterly contributions, try to make the maximum contribution as early as you can in a year. More of your money should have an opportunity for tax-deferred growth, not less. While you can delay making your 2013 IRA contribution until April 15, 2014, there is no advantage in waiting – you will stunt the compounding potential of those assets, and time is your friend here.
Do you own multiple IRAs? …
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3 Important IRA Deadlines to Remember
Monday, January 7th, 2013
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.
1. The deadline for your 2012 IRA contribution is April 15, 2013. For tax year 2012, you can contribute up to $5,000 to your Roth or traditional IRA. One exception: If you turned 50 in 2012, your Roth or traditional IRA contribution limit for 2012 is $6,000. You get 15½ months to make your IRA contribution for a given tax year. You can make your 2013 IRA contribution at any time until Monday, April 15, 2014.
Have you already made your IRA contributions? Hopefully, you contribute the maximum annually and make your contribution soon; the earlier that money is invested, the longer it can work for you.
Be sure to indicate the year of the IRA contribution on the check. This seems pretty basic, yet is too often overlooked. Write “2012 IRA contribution” or “2013 IRA contribution” or something …
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The Fiscal Cliff Deal & Your Taxes – What Will Change (And Won’t Change)
Thursday, January 3rd, 2013
Several tax hikes, some tax breaks. Now that the fiscal cliff deal assembled in Congress is becoming law, it is time to look at some of the tax law changes that will result. Here are the major details in the bill, which will bring significant tax hikes to some households in an effort to increase federal revenues by $600 billion over the next ten years.
The Bush-era tax cuts will be preserved for at least 98% of taxpayers. Individuals with incomes of $400,000 or less and households with incomes of $450,000 or less will not see their federal income tax rates rise. The EGTRRA/JGTRRA cuts have been made permanent for such earners.
The wealthiest Americans are looking at a major income tax hike. The top marginal tax rate will rise 4.6% in 2013 to 39.6%. Individuals with more than $400,000 in taxable income and couples with more than $450,000 in taxable income will be affected. …
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6 Questions To Ask Before Moving Into a Nursing Home Facility
Friday, December 28th, 2012
At some point, someone you love may make the transition from living at home to residing at an assisted living or nursing home facility. When should that transition occur, and what factors must be considered along the way? And what don’t these facilities tell you about?
1) When is it time? If an elder is a) safe and content at home, b) in reasonably stable health, c) can draw on personal or family resources for in-home care, d) has a sufficient “rotation” of family or professional caregivers available so as not to exhaust loved ones, then there may be no compelling reason for that elder to enter a nursing home or assisted living facility.
If, on the other hand, an elder’s health notably worsens and caregiving strains your own health, relationships and/or resources, then the time may have arrived.
2) If it is time, is a nursing home really necessary? It may not be. Keep in mind …
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8 Overlooked Ways To Save Money For Retirement
Monday, November 26th, 2012
Besides periodic IRA contributions and elective salary deferrals into 401(k) and 403(b) plans, there are other ways to amass retirement savings, some of them often overlooked.
1. Put tax refunds & tax savings to work. If you get a few hundred back from the IRS, that is not an insignificant sum. You could save it or you could invest it with the potential to compound that money. The same goes for the dollars you save as a result of tax credits or tax breaks.
2. Relocation. Ever thought about living where lifestyle costs are less? Moving to a cheaper part of the country might cost you a few thousand dollars, but the long-run savings could end up dwarfing that expense; you could free up thousands of dollars annually toward your retirement savings effort.
As an example, Zillow’s Q3 2012 Home Value Index showed the median home value in San Jose as $525,000 and the median home value at $356,100 in Boston. A San Jose resident could move to …
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5 Possible Fiscal Cliff Scenarios
Monday, November 5th, 2012
Will 2013 be as severe as some economists think? The fiscal cliff is getting closer and closer. How will Congress respond?
In the worst-case scenario, Congress argues and deadlocks. Tax hikes and roughly $109 billion in federal spending cuts take a bite out of GDP and another recession becomes a possibility.
There are other possibilities, however. The fiscal cliff may yet be averted, or at least we might back away from its edge. One of several scenarios might come to pass.
Scenario A: Congress buys time. Many analysts think this is exactly what will happen. Congress is in a lame-duck session. The option for legislators to “pass the buck” may prove tantalizing. So we could see a short-term, stopgap deal with the idea that the next session of Congress will tackle the problem later in 2013. The debt ceiling could be raised, and a “down payment” might be made on longer-term liabilities.
Scenario B: Congress can’t make a deal. This may not be so improbable; if you remember the …
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Smart Financial Moves for Late 2012/Early 2013
Tuesday, October 30th, 2012
What financial, business or life priorities do you need to address for 2013? Now is a good time to think about the investing, saving or budgeting methods you could employ toward specific objectives. Some year-end financial moves may prove crucial to the pursuit of those goals as well.
What can you do to lower your 2012 taxes? Before the year fades away, you have plenty of options. Here are a few that may prove convenient:
*Make a charitable gift before New Year’s Day. You can claim the deduction on your 2012 return, provided you use Schedule A. The paper trail is important here.
If you give cash, you need to document it. Even small contributions need to be demonstrated by a bank record, payroll deduction record, credit card statement, or written communication from the charity with the date and amount. Incidentally, the IRS does not equate a pledge with a donation. If you pledge $2,000 to a charity in December but only end up gifting $500 before 2012 …
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Important IRS Update – IRA’s & 401k Plans Will Have Higher Contribution Limits In 2013
Monday, October 22nd, 2012
The IRS has set annual contribution limits for IRAs, 401(k)s and other retirement plans higher for 2013, and made other important adjustments for inflation as well. Here is an overview of some notable changes just announced.
The 2013 IRA contribution limit: $5,500. This is a $500 increase from 2012, and it applies to both Roth and traditional IRAs. The IRA catch-up contribution limit for those 50 and older remains $1,000.
The 2013 contribution limit for 401(k), 403(b), TSP & most 457 plans: $17,500. For the second year in a row, we see a $500 increase. The catch-up contribution limit on these plans for participants 50 and older remains $5,500.
The phase-out range on Roth IRA contributions has increased. It starts $5,000 higher in 2013 than in 2012 for married couples filing jointly ($178,000-$188,000) and $2,000 higher for single filers and heads of household ($112,000-$127,000).
The phase-out range on deductible contributions to traditional IRAs has risen. In …
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Medicare Open Enrollment for 2013
Wednesday, October 17th, 2012
Medicare Open Enrollment has arrived. The open enrollment period begins October 15 and ends December 7, 2012. This is not only a period where you may enroll for the program, but also switch providers for your comprehensive health and drug coverage.
Some key dates to remember. This fall and winter, there are three periods in which Medicare beneficiaries can either enroll or disenroll in forms of coverage:
* Now through December 7: Open enrollment period. This is when you can elect to leave Original Medicare (Parts A and B) for a Medicare Advantage Plan (Part C) and change your prescription drug coverage (Part D). You can also elect to get out of a Part C plan and go back to Parts A and B during this period.
* December 8: Annual enrollment period begins for 5-star plans. As you probably know, Part C and Part D plans are assigned ratings. Beginning December 8, 2012 and ending November 30, 2013, a window opens for you to enroll in a …
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Should You Reduce Risk Exposure As You Get Older?
Tuesday, October 9th, 2012
If you move away from equities with age, are you making a mistake? For some time, financial professionals have encouraged investors to lessen their exposure to the stock market as they get older. After all, a 60-year-old has less time to recover from a market downturn than someone decades away from collecting Social Security checks.
Is that conventional thinking flawed? It might be. It isn’t simply a matter of looking at the future; you may also want to look at the past.
What’s the price of playing not to lose? It could be significant – at least in terms of opportunity cost. At this moment, how many people really want to shift money into fixed-rate investments?
Obviously, bonds, CDs and money market accounts will always hold some appeal as they tout protection of principal. Aside from that sense of safety, how does a 1% or 2% return sound? As we enter Q4 2012, the highest-paying 5-year CDs yield …
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8 Financial Considerations for 2013
Monday, September 17th, 2012
We are now in plain view of the “fiscal cliff”. After the election, Congress may or may not end up keeping income and estate tax rates at their recent levels. Next year may bring some notable financial developments, and it isn’t too soon for households to think about them.
1. You may want to prioritize tax reduction. If the Bush-era tax cuts sunset, everyone will see higher taxes. The federal income tax brackets (10%, 15%, 25%, 28%, 33%, 35%) that we have known for the last nine years would be replaced by five higher ones (15%, 28%, 31%, 36%, 39.6%) come 2013.
2. High earners may want to watch their incomes. If your earned income for 2013 tops $200,000 – or exceeds $250,000, in the case of a couple – you may face two Medicare surtaxes. While the Medicare payroll tax on earned incomes above these levels is set to rise to 2.35% from the current 1.45%, the second surtax may prove to be the real annoyance: …
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Why Is The Stock Market Rising?
Monday, August 27th, 2012
On August 21, the S&P 500 hit a 4-year high. It climbed 3% in the first three weeks of the month following a 1.26% July gain. Across the past four weeks, the index’s total return has been just under 4%.
Unexpected? You might say so. You can’t predict how the market will behave. This summer, stocks are managing to advance despite lingering threats.
Shouldn’t Wall Street be more pessimistic? After all, the “fiscal cliff” is drawing closer, the risk of a crack in the eurozone hasn’t exactly faded, and the European Central Bank and the Federal Reserve have not yet boldly responded to disappointing economic signals. Did Wall Street just collectively dismiss all of this in recent weeks?
Few saw this rally coming. The prevailing opinion – at least in spring – was that stocks would limp along through the summer, possibly retreating in reaction to news from Europe and subpar U.S. indicators. That was essentially the story in 2010 and 2011. In 2010, the S&P saw an …
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Avoiding Identity Theft
Tuesday, August 7th, 2012
According to data compiled by Norton, cybercrime hits over 74 million Americans annually. You know you have been victimized when you get that courtesy call or email from a bank or credit card issuer – but is there a way you can tell prior to that moment?
There are warning signs of cybercrime. Watching out for them just might save you money and headaches. If you notice any of the following conditions, pay attention.
Odd little charges appear on your credit card. Big charges are of course a giveaway, but criminals might first venture some little charges. This often happens when more sophisticated identity thieves buy or obtain credit or debit card numbers through syndicates or online forums (they do exist).
You stop getting credit or debit card statements. A thief may have changed the billing address. What time of the month do these bills arrive? Knowing when may alert you to something fishy.
Weird packages show up at your home or office. “I didn’t order …
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Retiring Solo
Monday, July 23rd, 2012
Most retirement planning literature portrays a retirement transition in the context of a couple or a family – but what about those who retire alone? What particular challenges do they face, and how must their preparation for retirement differ?
Retiring alone presents unique challenges. Singles who retire may lack a spousal and familial support network other retirees count on. If a lone retiree faces sizable medical bills, he or she can’t draw on the financial resources of a spouse. Unmarried, childless retirees also lack adult sons and daughters who might be able to offer them financial help or serve as executors of their estates one day.
Singles must plan ahead for them. The earlier, the better: if you anticipate a solo retirement, it might be very wise to plan for it decades in advance.
A basic financial truth can’t be dismissed: single retirees will need to amass savings comparable to those of a retired couple.
Why? It is because many retirement costs are fixed. Hospitals, universities, banks, pharmacies, mechanics …
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Estate Tax Laws – What Has Happened Since 2010 & What Could Happen in 2013
Wednesday, July 18th, 2012
With 2013 approaching, many families and their financial, tax and legal consultants are weighing major estate planning decisions. A short-term window of opportunity may be closing. The relatively low estate tax rates we have now may soon disappear, along with one of the largest federal tax breaks available in decades.
Estate taxes are at 80-year lows. At the end of 2010, Congress reset the estate, gift and generation-skipping tax (GST) rates at 35% and raised the lifetime federal gift, estate and GST tax exemptions to $5,120,000 until January 1, 2013. Some Capitol Hill legislators want to see these rates retained, even made permanent. Two other scenarios may be more likely.
In the first scenario, the Bush-era tax cuts expire at the end of 2012 and it becomes 2001 all over again: the lifetime estate and gift tax exemptions fall to $1 million and estate taxes are reset to 55% (60% for some households).
In the second scenario, Congress makes good on President Obama’s request to turn the clock …
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5 Things To Keep In Mind For Life After Work
Monday, July 2nd, 2012
Decades ago, there was a popular book entitled What They Don’t Teach You at Harvard Business School. Perhaps someday, another book will appear to discuss certain aspects of the retirement experience that go unrecognized – the “fine print”, if you will. Here are some little things that can be frequently overlooked.
How will you save in retirement? More and more baby boomers are retiring with the hope that they can become centenarians. That may prove true thanks to healthcare advances and generally healthier lifestyles.
We all save for retirement; with our increasing longevity, we will also need to save in retirement for the (presumed) decades ahead. That means more than budgeting; it means investing with growth and tax efficiency in mind year after year.
Could your cash flow be more important than your savings? While the #1 retirement fear is someday running out of money, your income stream may actually prove more important than your retirement nest egg. How great will the income stream be from …
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Health Insurance – What Happens In The Wake Of The Supreme Court’s Decision Today?
Friday, June 29th, 2012
The mandate stands. By a 5-4 vote, the Supreme Court has upheld the core of the 2010 Affordable Care Act. The law’s most controversial provision will stand – the mandate requiring every American citizen to buy individual health insurance coverage.
The court made a key distinction, interpreting that mandate not as a directive but as a tax. “The federal government does not have the power to order people to buy health insurance,” Chief Justice John G. Roberts, Jr. wrote in the majority opinion. “The federal government does have the power to impose a tax on those without health insurance.”
The ruling carries profound implications for individuals, businesses and households.
Every American has to have health insurance by 2014 or pay a tax. If you are already insured, this isn’t a dilemma – but if you are self-employed or work at a company with fewer than 50 employees that doesn’t provide health insurance coverage, securing health coverage will be your individual responsibility.
If you fail to buy health insurance …
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Health Insurance – What Happens In The Wake Of The Supreme Court’s Decision Today?
Friday, June 29th, 2012
The mandate stands. By a 5-4 vote, the Supreme Court has upheld the core of the 2010 Affordable Care Act. The law’s most controversial provision will stand – the mandate requiring every American citizen to buy individual health insurance coverage.
The court made a key distinction, interpreting that mandate not as a directive but as a tax. “The federal government does not have the power to order people to buy health insurance,” Chief Justice John G. Roberts, Jr. wrote in the majority opinion. “The federal government does have the power to impose a tax on those without health insurance.”
The ruling carries profound implications for individuals, businesses and households.
Every American has to have health insurance by 2014 or pay a tax. If you are already insured, this isn’t a dilemma – but if you are self-employed or work at a company with fewer than 50 employees that doesn’t provide health insurance coverage, securing health coverage will be your individual responsibility.
If you fail to buy health insurance …
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If Interest Rates Rise, What Happens to Bonds?
Monday, June 11th, 2012
We have seen an epic “flight to safety” this spring. In April alone, $20.6 billion moved into bond funds, according to Lipper. In the same month, $12.7 billion left stock funds (which marked the 12th consecutive month of net withdrawals).
The price of debt has really gone up, particularly U.S. and German sovereign debt. On June 1, the 10-year Treasury yield settled at 1.47% after touching an all-time low of 1.44%. It has consistently been below 2% since April 26. Germany’s 10-year notes were yielding around 1.2% during early June.
The real yield of the 10-year TIPS has been negative since January 24. In fact, it has only finished in positive territory on two days since December 9.
In the short term, few expect the current bond market climate to change. The question is … what happens when it does?
Are bond investors going to pay for it? At some point, interest rates will rise again; bond market values …
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What Happens Here if Greece Exits the Euro?
Tuesday, May 29th, 2012
If Greece leaves the eurozone in the coming months, what kind of financial ripples could reach America?
Nobody can predict the endgame yet; Greece may even stay in the euro, although that is looking less and less likely. The big concern isn’t what happens in Greece – it is about what could happen in Spain or Italy as a result of what happens in Greece.
The effects from a Greek default (and eurozone exit) would likely be felt on four fronts in America – but first, an economic chain reaction would almost certainly play out in Europe.
A Greek default could imperil Spain & Italy. If Greece leaves the euro, then Greek bondholders lose their money. A crisis of confidence in the euro could prompt institutional investors to either walk away or demand even higher interest rates on Italian and Spanish bonds. The European Central Bank could then step up and provide emergency lending, bond buying and recapitalization efforts. If those efforts were to fall short, the worst-case …
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Should You Sell In May & Go Away?
Monday, April 30th, 2012
An old stock market dictum says that spring is for profit-taking, or at least a time to reduce your exposure to equities.
In the classic market psychology, you “sell in May and go away” with the belief that stock prices will plateau or retreat in spring and summer, and then you return to stocks in the fall, taking advantage of bargains and factors that will encourage a hot fourth quarter.
In the last several years, we have seen all kinds of stock market behavior, some of it extraordinary. So is there any credence to this approach now?
The argument for “going away”. Over the last 12 months, investors who held to this belief made out pretty well. From May 1-November 1, 2011, the Dow lost 6.7%. From November 2011 through April 27, 2012, it gained 10.7%.
If we open a historical window – specifically, The Stock Trader’s Almanac – back to 1926, we see the S&P 500 rising 4.3% on average during May-October and gaining an average of …
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15 Ways to Spend Your Tax Refund
Monday, March 26th, 2012
Is a tax refund coming your way? If you have already received your refund for 2012 or are about to receive it, you might want to think about the destiny of that money. Here are some possibilities.
- Start (or add to) an emergency fund. Many people don’t have a dedicated rainy day fund, only the presumption that they might have enough cash in case of a financial tight spot.
- Invest in yourself. You could put the money toward education, career training, personal improvement, or some sort of personal experience with the potential to enhance your life.
- Put it into an IRA or workplace retirement account. If you haven’t maxed out your IRA this year or have a chance to get an employer match, why not?
- Help your child open up a Roth IRA. Has your under-18 son or daughter worked and earned money this year? He or she can open a Roth IRA. Your child’s contribution limit is $5,000 or the amount of his or her earned income for …
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Could Gas Prices Harm the Economy?
Monday, March 19th, 2012
By March 16, retail gas prices were up 16.94% YTD. This major climb is leading some economists to wonder if the leap in gas prices is powerful enough to stall our economic momentum.
In February, energy costs rose 6% for the American consumer. Gasoline prices accounted for 100% of that gain. In fact, gasoline prices were behind 80% of the overall 0.4% rise in the Consumer Price Index for February, meaning that last month brought the most consumer inflation of any month since April.
Weve seen $4 gas. What if $5 gas becomes common? If that happens during the summer driving season, the Federal Reserve may find itself weighing which move to make. Higher energy costs could hurt the broad economy, and if that happened, you would almost certainly hear clamor for some kind of stimulus. On the other hand, if Wall Street and Main Street both fret that inflation is rising, the Fed would hardly want to ease.
How does these price hikes affect consumer psychology? One …
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How Much Retirement Income Will You REALLY Need?
Monday, February 27th, 2012
What is enough? What is not enough? If you’re considering retiring in the near future, you’ve probably heard or read that you need about 70% of your end salary to live comfortably in retirement. This estimate is frequently repeated, but that doesn’t mean it’s true for everyone; it might not be true for you.
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The Facebook Frenzy Is Building. Should You Care?
Tuesday, February 7th, 2012
Anticipation is high. Facebook filed an S-1 form with the Securities and Exchange Commission on February 1, taking its first big step toward going public. It aims to raise $5 billion through its upcoming IPO. The Google IPO raised $1.9 billion, and this IPO could potentially dwarf that.
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Are People REALLY Retiring Later?
Monday, January 23rd, 2012
True or false? You may have heard this claim before (or something like it): Many Americans are being forced to retire later because their savings and investments took a hit in the Great Recession.
Recently, a big-name economist disputed that belief. In a commentary for Bloomberg, former White House budget director Peter Orszag wrote that some of the statistics dont seem to back up this conventional wisdom, but perhaps it all depends on which statistics you cite.
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Is Now The Time To Refinance Your Mortgage?
Friday, January 20th, 2012
Mortgages are cheaper than ever. Economists and real estate analysts who predicted lower interest rates were not disappointed; the earliest numbers from 2012 have reached an all-time low, leading a number of homeowners to consider their options.
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Starting Off 2012 On the Right Foot
Monday, January 9th, 2012
Every year brings some financial change, so here are some relevant changes relating to investment, tax and estate planning for 2012. As you strive to contribute as much as you comfortably can to these accounts this year, you will probably notice some changes with the retirement plan at your workplace.
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Wow…The Payroll Tax Cut Has Been Extended For Two Whole Months
Monday, December 26th, 2011
A last-minute gift to 160 million Americans. On December 23, Congress approved a 2-month extension of the payroll tax holiday that President Obama quickly signed into law. So we will not see shrunken paychecks come January. The new law also extends long-term unemployment benefits through February 29 and authorizes a 2-month reprieve on pay cuts to doctors by Medicare.
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What Do You Do When An Account Owner Passes Away?
Monday, December 19th, 2011
If your loved ones have invested, saved or insured themselves to any degree, you may be named as a beneficiary to one or more of their accounts, policies or assets in the event of their deaths. While we all hope that day never comes, we do need to know what to do financially if and when it does.
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Will The Payroll Tax Cut Survive? Could It? Should It?
Monday, December 5th, 2011
There is hope yet that this big tax break will return in 2012. While a pair of bills designed to extend the payroll tax holiday stalled in the Senate on December 1, a bipartisan effort could take place to save the tax cut that amounts to roughly $900 a year for the average U.S. household. It may not be taken for granted as much as the annual AMT patch, but it seems unlikely any Congress would want be remembered for ending such a big tax break for Main Street in such a tepid economy.
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The (Anything BUTT) Super Committee’s Epic Failure – What This Might Mean For The Economy & The Markets
Tuesday, November 22nd, 2011
Congress punts on third down. Unable to reach consensus, the Congressional super committee of 12 offered America a disappointing result Monday. As the super committee failed to create a plan to trim $1.2 trillion or more from the federal deficit, that sets things up for an automatic $1.2 trillion in cuts effective over a 10-year stretch beginning January 2, 2013.
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Could Big Changes Be Coming to Your 401(k)?
Monday, November 14th, 2011
Our federal government needs to reduce its massive deficit – and among the many revenue-generating ideas being discussed in Congress, two in particular could have disturbing consequences for employees saving for retirement.
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Your Annual Financial To-Do List – Things YOU Can Do Before & For 2012
Monday, November 7th, 2011
The end of the year is a good time to review your personal finances. What are your financial, business or life priorities for 2012? Try to specify the goals you want to accomplish. Think about the consistent investing, saving or budgeting methods you could use to realize them. Also, consider these year-end moves.
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Obama’s New Debt Relief Initiatives
Tuesday, November 1st, 2011
President Obama has just announced two initiatives to try and ease debt burdens for Americans – moves that some view as election-minded appeals to the younger and middle-class voters that backed him wholeheartedly in 2008. With the American Jobs Act having stalled in the Senate, it isn’t surprising that these changes are coming through executive branch measures rather than proposed legislation. When put into play, will these two ideas have a meaningful economic impact? Let’s take a closer look at them…
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Another Recession? NOT!
Monday, October 24th, 2011
This year, assorted economists and journalists have contended that the U.S. is on the edge of a new recession. Yet recent indicators hint that the economy is doing a bit better than some analysts think. The continued vitality in consumer spending and other encouraging factors points to a recovery. It may seem unimpressive or frustrating, but it doesn’t indicate a recession.
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Stocks in the 4th Quarter
Monday, October 10th, 2011
Will the Street put its anxieties aside? Right now, you have a lot of uncertainty. Many analysts see a stock market unimpressed by tepid domestic growth and waiting fearfully for the other shoe to drop (meaning Greece). They see more pain ahead for U.S. investors. On the other hand, there is also talk of when a point of capitulation might be reached, i.e., is Wall Street simply ready to rally even in the face of the debt troubles in Europe and the slow recovery here.
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How Does Greece Impact Me?
Monday, September 26th, 2011
Many economists think a Greek default is inevitable. As we enter 4Q 2011, Greece has a debt-to-GDP ratio of about 160% (and that percentage is rising). While Greece accounts for less than 3% of Eurozone GDP, ripples from a Greek default could strain the European banking sector and global financial markets. Struggling for the best worst-case scenario. Greece is redoing its financial system, but it is still facing one of five potential (and painful) outcomes…
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401(k)s & IRAs: PHASE-OUTS & CONTRIBUTION LIMITS
Wednesday, September 14th, 2011
Will phase-outs affect your IRA contributions? Highly paid employees who contribute to workplace retirement plans can’t always maximize their IRA deductions. That is because of IRS phase-outs that kick in at certain modified adjusted gross income (MAGI) levels. A 2011 example. This year, you could contribute up to $5,000 to a traditional or Roth IRA ($6,000 if you were 50 or older). Yet if you were covered by a retirement plan at work, your contribution to a traditional IRA was reduced if your MAGI was…
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Debt Deal, Downgrade, Dow Drop … Where Have We Landed?
Tuesday, August 23rd, 2011
August 2011 is on pace to become the roughest and most volatile month for the stock market in almost three years. Where exactly will this correction bottom out? How long will buyers stay on the sidelines?
Two crucial questions await answers – but before turning to those questions, consider the developments that really hurt equities in the middle of August.
Morgan Stanley and JPMorgan Chase forecasts depressed investors. On August 18, Morgan Stanley said it had cut its global growth forecasts, citing “policy errors” on the part of the U.S. and European Union. It now anticipates global growth of 3.9% for 2011 (down from the previous estimate of 4.2%) and it sees the global economy expanding by 3.8% in 2012 (down from its previous forecast of 4.5%). JPMorgan Chase revised its 4Q 2011 U.S. GDP projection down to 1.0% from the previous 2.5% on August 19; on the same day, Goldman Sachs cut its …
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Time To Invest More In Stocks?
Monday, August 15th, 2011
“The lower things go, the more I buy.” The legendary Warren Buffett said those words on August 9 in a chat with Fortune. Buffett is a buy-and-hold kind of guy, and even if you don’t buy into his approach, you have to admit stocks are cheap in the wake of the recent correction. For many investors, a downturn like this means picking up quality stocks at markdown prices, including dividend-paying stocks.
Just how cheap are stocks in August? We have some compelling valuations out there. Just to give you some idea of where the broad market is at, the 12-month forward equity earnings yield of the MSCI World Index (according to Reuters) was just above 10% on August 12. This was the highest earnings yield since January 2009 – and more than five times the yield of the 10-year Treasury in mid-August.
Domestically, Capital IQ data from August 12 shows that stocks in the …
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S&P Downgrades U.S.
Monday, August 8th, 2011
Unprecedented and unsettling. Standard & Poor’s issued a historic downgrade of U.S. debt on August 5, sensibly waiting until the market week had concluded to send a shock wave toward global investors. It reduced America’s long-term debt rating – which had been AAA since 1941 – to AA+.
S&P felt Congress did too little too late. The credit rating agency had threatened to lower the boom if Congress passed any deficit reduction plan smaller than $4 trillion in scope. The Budget Control Act of 2011 “falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” an S&P statement noted. It also retained its “negative” credit outlook on the U.S.
S&P is also skeptical that the federal government can collect more money from taxpayers. Its analysts do not think the Bush-era tax cuts will sunset at the end of 2012 “because the majority of Republicans in Congress …
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The Best (and Worst) States To Be Financially
Tuesday, August 2nd, 2011
Do you live in one of the worst tax states for retirees? Are you fortunate enough to live in one of the best states to do business? Here is a roundup of the miscellaneous, fascinating rankings offered by leading magazines and websites.
What are the best (and worst) states for business? Well, CNBC has ranked all 50 states based on 43 criteria including quality of work force, cost of doing business, quality of life, state economies and access to capital. Coming in at #1: Virginia. Number two is Texas, number three is North Carolina. The state with the lowest cost of doing business – Iowa – ranked 9th. The bottom three? Hawaii (48th), Alaska (49th) and … Rhode Island? Yes, it was dead last. CNBC cited its 10.9% jobless rate and a corporate tax rate nearly as high.
What are the best (and worst) tax states for retirees? Kiplinger sees four “tax hells” in …
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Women & Retirement Perceptions
Monday, July 25th, 2011
In January 2011, Merrill Lynch released the results of a survey asking baby boomers with $250,000+ in investable assets about their retirement hopes. There were some interesting across-the-board findings – 70% of those polled expected to work at least part-time, and 84% felt their retirements would be more comfortable and dynamic than those of their parents. Yet it was the collective response of women in the 1,000-investor study that drew the most attention.
Women envision a very active retirement. Volunteering and travel registered as major priorities for women, more so than for men: 64% of women said they wanted to get more involved in their communities, 62% planned to devote more time to philanthropy, and 86% planned to travel when retired. Additionally, 14% of the women surveyed said that they wanted to start a business after their careers ended.
Women are more concerned than men about running out of money. While 52% of male respondents …
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The D Word That Haunts Wall Street
Tuesday, July 5th, 2011
When will the debt ceiling issue be solved? The NFL, the NBA, the EU, Congress … wherever you look, it seems people would rather wrangle these days than resolve their differences. The U.S. Treasury has set a hard deadline of August 2 for Congress to settle its divide on the federal debt ceiling, and if partisan bickering interferes, the world economy could suffer a severe hit.
What would happen if we miss the deadline? According to federal budget analysts at the Bipartisan Policy Center, the Treasury would only be able to make a slight majority of its 80 million monthly payments in August. Treasury Secretary Timothy Geithner would likely be put in the same position as a struggling consumer low on cash and behind on his bills: he would have to selectively decide which debts to pay for the month and which to ignore.
Should August 2 come and go without a solution, Congress’s inaction (and Geithner’s subsequent decisions) would have dramatic global repercussions. Most likely, his …
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The Current CD Quandary – Today’s Yield Can’t Beat Inflation
Monday, June 20th, 2011
CD investors are effectively losing money. According to Market Rates Insight, a research firm tracking bank rates, annualized inflation has surpassed long-term certificate of deposit rates since February. In April, 12-month inflation hit 3.16% while the highest-yielding 5-year callable CD on the market offered a 2.4% interest rate. May’s Consumer Price Index put annualized inflation at 3.6%; as of mid-June, the highest-yielding nationally available 5-year CD was at 3.05% APY.
Still, the Federal Reserve found that almost $9 trillion of American wealth was held in CDs, bank accounts and various FDIC-insured products as of April.
It’s a case of déjà vu. This is the second time in recent history that CD investors have been punished for assuming so little risk. During the period from January-July 2008, the negative yield on 5-year CDs was 1.8% according to MRI.
They might come out ahead … should inflation diminish. As Bankrate.com senior financial analyst Greg McBride reminded Bloomberg, “Investing in a CD isn’t compensating you for last year’s inflation; it’s …
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4 Reasons For Optimism
Monday, June 13th, 2011
When was the last time the Dow took a six-week tumble? On June 10, the Dow dipped below 12,000 and posted its sixth straight weekly decline. You have to go back to October 2002 to find a Dow losing streak that long. If you’re hearing bearish groans in the distance, you’re not alone: the bears are making their voices heard as the Dow is down almost 7% from where it was at the end of April.
June certainly has been tough on Wall Street, with the bulk of economic indicators flashing a slowdown. However, there is reason to think the third and fourth quarters of 2011 may be better for stocks – in fact, that’s what many analysts believe.
Q2 earnings projections are quite good. Investment research firm FactSet finds that despite the losing streak, aggregate Q2 S&P 500 earnings estimates are basically unchanged from late May. The collective forecast projects a 14.6% growth in earnings for the quarter and a 10.4% jump in revenues. (That double-digit revenue …
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Retirement Expert Bill Losey Interviewed By Bloomberg TV On The Pros & Cons Of Long Term Care Planning
Wednesday, June 8th, 2011
In this video interview with Bloomberg TV, I share reasons why someone like you may or may not want to consider long-term care insurance.
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A Woman’s Financial Reality – Your Financial Future Is Up To You & No One Else
Monday, June 6th, 2011
Will this be your future? Did you know that Social Security income represents two-thirds of income for women 65 and older? Did you know that without Social Security, an estimated 58% of widows aged 65 and older would live in poverty?
These findings are from a 2010 U.S. Congress Joint Economic Committee report. As Rep. Carolyn Maloney (D-NY) put it, “Social Security is literally a lifeline for most elderly women.”
That lifeline is barely adequate. With inflation and other economic pressures, a mature woman relying on SSI may eventually have to choose between food or medicine, or rent or car repair, or contend with other stressful money dilemmas.
When these women were younger, did they envision such a meager future ahead of them? Probably not. More than a few probably wish they had understood money matters better or actively invested for retirement.
How much do you know about personal finance? The more knowledge you have, the …
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The Debate About Our Debt Ceiling
Thursday, May 12th, 2011
Congress must think (and act) fast. In the middle of May, the national debt limit of $14.3 trillion will be reached. This means the federal government must increase the debt ceiling sufficiently to cover U.S. obligations through the end of 2012. It will undoubtedly happen, but not before a loud round of partisan politics is finished.
What does the public think? In April, a CBS News poll showed that 63% of Americans opposed raising the debt ceiling. Polls often ask simple yes-or-no questions, and the respondents may not have understood the consequences here. If the debt ceiling isn’t raised, America will end up defaulting.
What would default mean? Picture something like the Wall Street downturn of 2008-2009 happening again … but in a broader context.
As Treasury Secretary Timothy Geithner explained succinctly in a letter to Senate Majority Leader Harry Reid (D-NV), a default would mean that “the Treasury would be prevented by law from borrowing in order …
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Will Gas Hit $5 or $6 A Gallon? When Will We See Relief?
Monday, April 25th, 2011
How high will pump prices go this summer? Many analysts think we will pay $5 a gallon for gas this summer – and some think gas will cost much more than that. On April 20, the AAA’s Daily Fuel Gauge Report had regular unleaded averaging more than $4 per gallon in six states – Hawaii, California, Alaska, Connecticut, Illinois and New York.
Is collusion behind this, or simple economics? While the Justice Department has announced a task force to investigate fraud and manipulation in the oil industry, most economists see this as little more than a public relations move coming out of the Obama administration – the U.S. had no way to control global price pressures on oil in 1979 and it has no way to control the price of the commodity in 2011.
One of the biggest influences on oil and gas prices can be found in your wallet: the U.S. dollar.
Commodities are priced in U.S. …
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How To Build Good Credit (and Improve Your Credit Score)
Tuesday, April 19th, 2011
740 is the new 720. If you want to refinance or buy a home or pass muster with a lender, a landlord, an insurer or even a possible employer, it will help to have a credit score of 740 or better. While the median FICO score in America is still 720, many lenders have now set the bar 20 points higher.
Fannie Mae has also raised its requirements: FNMA used to request that you had a credit score of at least 580, and now you need a 620 or higher.
Fair Isaac, the credit rating agency behind the FICO score, says that 13% of Americans have credit scores of 800 or better. You may not, and if your score is nowhere near that lofty mark, here are the steps toward possibly improving it.
First, look at your credit reports. Go to annualcreditreport.com – a free, centralized online service created by Equifax, Experian and TransUnion – and request a …
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2 Reasons NOT To Take Early Withdrawals From Your Retirement Accounts
Monday, April 11th, 2011
There are times when people really need money – and in those times, a retirement account may seem like a conveniently liquid resource to tap. What’s the harm in taking an early distribution from a tax-deferred retirement plan? Well, the tax bite could be considerable.
Big taxes may await you. If you are younger than 59½, working, and you withdraw funds from your 401(k) or IRA just as you would from a bank account, you might really feel the pain next April. An early distribution from an IRA or a qualified retirement plan must usually be included in your taxable income. So your federal tax bill could balloon for the year in which you take the distribution. (If you take an early distribution from a Roth IRA, you won’t be taxed on the amount of your contributions. Any amount above that which is attributable to the Roth IRA’s earnings will be subject to tax.)
An …
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March in Review
Thursday, April 7th, 2011
Would you believe the Dow Jones Industrial Average managed to eke out a gain in March? It rose 0.76% on the month, even as a plethora of troubling headlines rocked the world and Wall Street. At home, the unemployment rate was descending and consumers increased their spending (though mainly in response to higher energy and food costs), and the service and manufacturing sectors kept growing. The newest real estate reports showed home sales and home prices headed south. Oil went above $100 a barrel, gold prices increased and silver prices matched 30-year peaks.
DOMESTIC ECONOMIC HEALTH
The unemployment rate fell to 8.8% in March – a full percentage point below where it had been in November. The jobless rate hadn’t been so low since April 2009. According to the Commerce Department, personal spending rose 0.7% for February – but there was an asterisk. Prices rose 0.4% last month as measured by the PCE index, …
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April Is Near. Keep Your IRA In Mind!
Monday, March 14th, 2011
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.
The deadline for your 2010 IRA contribution is April 18, 2011. Yes, April 18. This year, April 15 falls on a holiday in the District of Columbia (Emancipation Day). So you get a little extra time to make your 2010 contribution if you (still) haven’t done so.
For tax years 2010 and 2011, you can contribute up to $5,000 to your IRA. If you have multiple IRAs, you can contribute up to a total of $5,000 across the various accounts. (If you earn a lot of money, your maximum contribution to a Roth IRA may be reduced because of MAGI phase-outs.)
If you turned 50 in 2010, your IRA contribution limit for 2010 is $6,000. If you will celebrate your 50th birthday during 2011, your 2011 contribution limit …
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The Top 10 Reasons NOT To Plan For Retirement
Wednesday, February 16th, 2011
You probably read or hear about some “Top Ten” list nearly every day. But take a moment to read this one. This list is different, and probably not the kind of list you’d expect a Financial Advisor to post.
Reason #10: “I’m too busy”
I can’t tell you how often I hear this excuse. So many people want to plan for a better retirement, but they don’t have time. They think they’ll take care of it tomorrow, or the day after that … and before they know it, several years have gone by. The best advice I can give you is to stop procrastinating and start planning today.
Reason #9: “It’s too soon”
I don’t know how this happened, but many people have adopted the notion that you don’t have to start planning for your retirement until you’re almost there. This is totally incorrect. The truth is, the sooner you start planning, the better chance …
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Bye Bye Fannie & Freddie?
Monday, February 14th, 2011
A fundamental reform for the housing market. For two-and-a-half years, economists and housing industry analysts have wondered what would happen with Fannie Mae and Freddie Mac. On February 11, they got an answer: the Obama administration announced plans to shut down both of the troubled mortgage giants by 2018 or sooner.
As he met with the press, Treasury Secretary Timothy Geithner cited the “very broad consensus” that the government should play “a much smaller role” in the housing market. Capitol Hill Republicans would agree, pointing to the $154 billion price tag for the 2008 bailout of both firms. (That is the Treasury’s estimate.)
The choices on the table. The Obama administration’s white paper offers three proposals to Congress, with the hope of legislation emerging by 2014.
- Option 1. The government walks away from the mortgage market except for the FHA, VHA and a few other programs designed to help low-income and moderate-income homebuyers.
- Option 2. The government offers a …
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Unrest In Egypt – What Does It Mean For The Markets?
Monday, January 31st, 2011
Will the Mubarak government be toppled? Egyptians took to the streets in Cairo and other major cities Friday, facing riot squads and armored personnel carriers as they demanded political reforms and an end to the 30-year rule of the country’s president, Hosni Mubarak.
The Mubarak government shut down the nation’s internet providers and mobile phone network and imposed a nationwide nightly curfew within a 36-hour period Thursday and Friday. In response, a huge crowd surrounded the Cairo headquarters of Mubarak’s National Democratic Party (which was set on fire) and the nation’s key radio and television headquarters. Great Britain’s Telegraph reported that 870 in the crowd suffered injuries, with some protestors being shot.
How did the markets interpret the turmoil? The reaction was as expected: stocks dived, oil and gold prices immediately climbed and there was renewed interest in the dollar and U.S. government bonds.
Gold gained $22.30 (1.69%) on the COMEX, while oil rose $3.70 (4.32%) on …
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Giggin’ It As A NY Lounge Lizard
Friday, January 21st, 2011
Here’s a great profile piece on me (aka The New York Lounge Lizards). When I’m not helping people make smart decisions with their money, this is how I love to spend my free time…singing! Enjoy!
Click here to read the full article.
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What Factors Need To Be In Place For Jobs & Housing To Improve
Monday, January 10th, 2011
It really boils down to the two greatest economic factors of all: supply and demand.
What needs to happen in the labor market? Ideally, a swift rise in consumer demand for goods and services in 2011 spurs businesses to hire, with no need for another costly federal stimulus. About 125,000 people enter the U.S. labor force every month, so job creation needs to hit that level just to tread water in terms of employment–to-population ratio. Data from the Brookings Institution shows that 280,000 new positions emerged monthly at the peak of job creation in the 2000s. Back in 1994, the economy was creating an average of 321,000 new jobs a month.
As 2010 drew to a close, our economy wasn’t anywhere near that. According to the Labor Department, 71,000 new non-farm jobs were created in November and 103,000 new non-farm jobs in December. Last month, the government said that private payrolls grew …
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Financial & Retirement Resolutions for 2011
Friday, December 31st, 2010
Whether you’re in your 20′s, 30′s, 40′s, 50′s, or 60′s, here are the things you should focus on in 2011 to build your net worth and self worth. Enjoy!
Click here to read the full article.
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Investor Alert – The New IRS Reporting Rules
Monday, November 22nd, 2010
Are you going to purchase stocks in 2011? If your answer to that question is “yes’, there’s an important IRS rule change you should know about.
If you buy a stock in 2011, your broker must report the gain or loss when you sell it. In fact, this will be true for the following investment classes as of the following dates:
· Individual stocks you buy after January 1, 2011
· Mutual fund shares you buy after January 1, 2012
· Bonds, options & other securities you buy after January 1, 2013
Prior to 2011, reporting the gain or loss triggered by the sale of an investment was your responsibility – but the IRS wasn’t satisfied with that.
It’s all about the cost basis. To properly tax your investment when it is sold, the IRS has to know what you initially paid for it. In financial jargon, this acquisition price is known as the cost basis.
It isn’t always easy …
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We’re All In This Together
Monday, November 15th, 2010
Retirement Expert Bill Losey talks with Business Examiner on how companies and employees can work together so folks like you won’t run out of money in retirement.
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Retirement Expert Bill Losey Interviewed by Newsweek
Thursday, November 11th, 2010
On the heels of one of the country’s worst economic crises, future retirees are facing far grimmer golden years. Here are 5 things you should know before you retire.
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Retirement Expert Bill Losey Interviewed by The New York Times
Monday, November 8th, 2010
Should you payoff your mortgage early? Should you invest your money rather than pre-pay? In this article for the New York Times, I share my feelings.
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Bill Losey singing Bon Jovi’s “It’s My Life” – Acoustic Version
Monday, November 1st, 2010
My friend and I had our first paid singing gig Friday night. We got to sing over 40 different songs during our three hour set. This is one of my personal favorites. Enjoy!
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My Take On The Mid-Term Elections & Stocks
Monday, October 18th, 2010
You may have heard that stocks tend to rally in fall and winter. That has often been the case. In fact, the S&P 500 and the Dow have gained repeatedly after the elections occurring in the third year of a first-term presidency.
These elections seem to elate Wall Street. While past performance is no indication of future success, consider this: Wall Street has witnessed rallies after every mid-term election since 1942.
The Leuthold Group, a Minneapolis-based investment research firm, has determined that the S&P 500 has gained an average of 18.3% in the 200 days following such elections. Widening the window of time, Goldman Sachs finds that the S&P has averaged an 18.1% advance during the 12 months following each of the 15 mid-term elections since 1950. (The gain averages 11.0% when control of Congress changes hands.)
Consider another intriguing statistic regarding mid-term election years: in the five instances since 1942 when an incumbent first-term president was a Democrat, the S&P 500 has gained an average of 21.3% …
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Bill Losey Sings Before 1,000+ At Saratoga State Park
Monday, October 4th, 2010
As you may know, I love to sing. This past weekend I had the honor and privilege to perform before 1,000+ people attending the camporee celebrating the 100th Anniversary of the Boy Scouts of America. There was a huge conga line, a beach ball flying through the air, a mosh pit and people asking for an encore. Now I know how “real” rock stars must feel. It was pretty cool. Listen in as I sing Lee Greenwood’s “God Bless The U.S.A.” and Louis Armstrong’s “What A Wonderful World”. Enjoy!
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Retirement Expert Bill Losey, CFP Interviewed By Human Resource Executive Online on 401(k)s
Monday, October 4th, 2010
Defined-contribution-plan participants say they are confused by their retirement plans and would welcome financial advice, but few take advantage of online tools when offered by employers. Bill Losey and others offer some advice on how to engage workers to take action to positively impact their retirement savings.
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6 Ways To Reduce & Eliminate Your Debt
Wednesday, September 22nd, 2010
Retirement expert Bill Losey, CFP dishes out advice to get rid of that pesky debt once and for all. Listen here to his recent interview from the “On The Money” radio program.
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Bill Losey Featured on KMOX-AM
Thursday, September 16th, 2010
“America’s Retirement Strategist” Bill Losey, featured on KMOX-AM to share some free advice on managing your 401k.
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The Social Security Dilemma
Tuesday, September 14th, 2010
In this video lesson, retirement expert and Retire in a Weekend! author, Bill Losey, CFP, answers the question: “Should I Take Social Security At Age 62 or Wait?”
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The Media & Why Stock Market Predictions DON’T Work
Monday, August 30th, 2010
Wall Street trader’s are coming back from vacation next week. The media says we should prepare for another stock market sell-off. Do they know something we don’t know? In this video lesson, retirement expert and Retire in a Weekend! author, Bill Losey, CFP, sets the record straight.
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Should I Get Out Of Debt Before Saving For Retirement?
Monday, August 16th, 2010
In a followup to last weeks video lesson, retirement expert and Retire in a Weekend! author, Bill Losey, CFP, addresses the great debt reduction versus retirement savings debate.
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Should I Invest in my 401k, my IRA, or Contribute to Both?
Monday, August 9th, 2010
In this video lesson, retirement authority and Retire in a Weekend! author, Bill Losey, CFP, addresses a common retirement savings and investing dilemma.
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Can I Avoid the 10% IRS Penalty?
Tuesday, August 3rd, 2010
In this short video, retirement advisor and Retire in a Weekend! author, Bill Losey, CFP, explains a few ways (exceptions) you can take money out of your IRA before age 59 1/2 and avoid the 10% IRS early withdrawal penalty.
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Should I Make My IRA & 401(k) Retirement Rollover Accounts More Conservative?
Monday, July 26th, 2010
In this video, retirement expert and Retire in a Weekend! author, Bill Losey, CFP, addresses a question from a Retirement Intelligence newsletter subscriber concerned about all the recent stock market volatility.
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4 Things To Do When Retirement Is Right Around The Corner by Bill Losey, CFP
Wednesday, July 21st, 2010
In this video, retirement expert and Retire in a Weekend author, Bill Losey, CFP, provides four bottom-line suggestions to consider when retirement is imminent.
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Retirement Expert Bill Losey, CFP Interviewed by The New York Daily News
Monday, July 12th, 2010
Whether you’ve been let go from your job or have chosen to move on to a new employer, starting over can be tumultuous. Among the many decisions to be made is one that could have a big impact on your retirement: What should you do with your 401(k), 403(b) or other savings plan?
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3 Ways To Kill Your Retirement
Wednesday, July 7th, 2010
In this video, Retirement Expert Bill Losey, CFP illustrates three ways people ruin their retirement. Avoid these simple mistakes and you should be okay.
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Your Debt Diet – The Skinny On Shedding Your Unwanted Financial Fat
Friday, July 2nd, 2010
According to a recent survey, most Americans have a long way to go before feeling financially prepared to retire. 63% say debt is preventing them from saving for retirement. 4 in 10 said they were concerned that they have too much debt. It’s time to go on a summer debt diet. Bill Losey provides six steps to shed that unwanted financial fat in this recent interview with WJIM radio.
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The $1 Million Retirement Question
Wednesday, June 30th, 2010
In this video, retirement expert and Retire in a Weekend author Bill Losey addresses one of the most popular questions he’s asked by pre-retirees and baby boomers nationwide.
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Podcast: 7 Ways To Make Retirement a Reality
Tuesday, June 29th, 2010
In recent years, the financial risks surrounding retirement have increased dramatically because of longer life expectancies, low interest rates, the volatile stock market, rising health care costs, business performance and employment conditions, among other issues. While planning for retirement can be a stressful, daunting task, it doesn’t have to be that way. You don”t need to be up to your elbows in social security, pension, and savings. In fact, all it takes is seven simple steps.
Listen now to Bill’s interview with Don Week’s of WGY Radio
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FOXBusiness.com interviews Retirement Planning Expert Bill Losey, CFP
Tuesday, June 22nd, 2010
Click here to discover what to do and consider “When Retirement is Just Around the Corner”
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Retirement Advisor & Expert Bill Losey, CFP interviewed by the Salt Lake Tribune on Tips For Getting Out Of Debt
Tuesday, June 15th, 2010
Smart money-moves to building financial stability. The best way to pay off your plastic. How to put together your own financial bailout plan.
Click Here
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Retirement Expert Bill Losey, CFP interviewed by Jean Chatzky on 401k Rollovers to a Self-Directed IRA
Tuesday, June 8th, 2010
Retiring? Changing jobs? Remember to rollover your 401(k). Click here to read full article.
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How Often Should I Hear From My Advisor?
Monday, June 7th, 2010
In this video lesson, Retirement Expert Bill Losey, CFP addresses a common complaint he hears often from people who have their investments at big national Wall Street firms.
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Should I Sell My Mutual Funds & Buy CDs Now?
Wednesday, May 26th, 2010
Retirement Expert Bill Losey, CFP answers a question from a Retirement Intelligence subscriber concerned about losing money in the stock market.
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Video: Retirement Expert Bill Losey, CFP discusses 7 Reasons Why The Stock Market is so Volatile
Friday, May 21st, 2010
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Retirement Expert Bill Losey, CFP discusses The Difference Between Asset Allocation & Diversification
Tuesday, May 11th, 2010
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Retirement Expert Bill Losey, CFP discussing today’s volatile stock market (and what you can do to protect yourself)
Thursday, May 6th, 2010
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Retirement Expert Bill Losey, CFP quoted by Bankrate.com
Friday, April 30th, 2010
Should you continue to make mortgage payments after you retire? Or should you pay off the house before quitting your job for good? It really depends on your goals and situation. In this article however, I provide a few reasons why you may not want to pay it off.
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Retirement Expert Bill Losey, CFP interviewed by Jean Chatzky of The TODAY Show
Thursday, April 29th, 2010
In this recent interview with Jean Chatzky, I share a few reasons why you may end up working longer than originally planned.
When will you retire? Maybe not as soon as you think unless you’re willing to “downsize and simplify”.
Click here to see the full story.
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Video: Retirement Expert Bill Losey, CFP explains how to protect your IRA & 401k from the next market freefall.
Wednesday, April 28th, 2010
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Video: Retirement Expert Bill Losey, CFP discussing Common Investor Mistakes & How YOU Can Avoid Them
Tuesday, April 20th, 2010
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Video: Retirement Expert Bill Losey, CFP addresses multiple questions from a subscriber about what traits to look for (and lookout for) when choosing a financial advisor.
Monday, April 19th, 2010
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Video: Retirement Expert Bill Losey, CFP addresses a question from a woman concerned about her husband’s pension and 401k.
Wednesday, April 14th, 2010
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Video: Retirement Advisor Bill Losey, CFP talks about a Phased Retirement versus Retiring All At Once
Wednesday, April 7th, 2010
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Bill Losey, CFP Interviewed by TIME
Tuesday, April 6th, 2010
In this recent interview with TIME, I provide my opinion on the IRA-Roth Conversion and talk about why most people aren’t taking advantage of the 2010 opportunity.
Click HERE to view the interview!
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Bill Losey Interviewed by ABC News Now in NYC
Saturday, April 3rd, 2010
In this recent TV interview, I give seven tips to spring clean your finances. Topics discussed include what to do with your tax refund, getting out of debt, funding an emergency fund, starting an IRA, retirement strategies for baby boomers, rewarding yourself, and avoiding one of the top money mistakes. Enjoy!
Click HERE to see the video!
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Video: Retirement Advisor Bill Losey, CFP talks about passion and asks “What Would You Attempt To Do If You Knew You Couldn’t Fail?
Friday, April 2nd, 2010
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Video: Retirement Advisor Bill Losey, CFP discusses How To Protect Your Retirement Income From Inflation
Thursday, April 1st, 2010
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Video: Retirement Advisor Bill Losey, CFP answers the question “Do I Have Enough Money To Retire?”
Wednesday, March 31st, 2010
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Video: Retirement Advisor Bill Losey, CFP – “What Percentage Of My Pre-Retirement Income Will I Need To Live In Retirement?”
Sunday, March 28th, 2010
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Bill Losey Interviewed by CNNMoney.com – Retired Couples Need $250,000 for Health Care Costs?
Friday, March 26th, 2010
Fidelity Investments announced yesterday that if you’re retiring this year, you’ll need $250,000 in savings to cover your family’s medical expenses during your retirement. Don’t let this number scare you. See why here.
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Video: Retirement Advisor Bill Losey Discusses 5 Big Retirement Mistakes (& How YOU Can Avoid Them)
Thursday, March 25th, 2010
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Bill Losey Video: 401k Rollover Advice On How To Avoid The 20% IRS Withholding Penalty
Monday, March 22nd, 2010
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Bill Losey Video: 401k Retirement Rollover Advice For Your Self-Directed IRA
Friday, March 19th, 2010
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Bill Losey Video: The Best Way To Invest Your IRA & 401k Money In Retirement
Thursday, March 18th, 2010
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Bill Losey Video: How to Protect Your IRA & 401k Retirement Assets
Monday, March 15th, 2010
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Bill Losey: Five Savings Secrets
Monday, March 8th, 2010
How to increase your savings without significantly lowering your quality of life.
What’s the problem? In general, when it comes to a lack of savings, it is often not a question of low income, but a matter of high spending. While it’s very true that often we’re put into situations where we must spend money (due to loss of employment, health care bills, home repairs, etc.), for many of us our excessive spending is merely a habit we must learn to break … or at least control.
But … where do we begin? Many people would like to reduce their spending and increase their savings, but it seems like such a monumental task that they simply don’t take any steps in the right direction. Sound familiar? If so, don’t shrug it off any longer. Saving money can begin right now, and you can start in small ways. Here are several easy ways to increase your savings …
Secret #1: “Put it on the mantle”
My grandmother used to use …
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Bill Losey: 5 Retirement Planning Blunders
Tuesday, March 2nd, 2010
Retiring from ones job can be a stressful time but it doesn’t have to be. Realize that it’s natural to be nervous, anxious and/or confused when you’re going through a major life change. Your decision to retire is causing you to step outside your comfort zone and is forcing you to make many new decisions and learn new things. Most importantly, remember that you only get one shot at retirement and you don’t want to make any mistakes. So here are some of the more common mistakes people make when retiring and how you can avoid them.
- Listening to the wrong people – Everyone’s got an opinion about what you should do with your money nowadays. Be sure to find a retirement specialist, preferably one with 10 or more year’s experience. This is no time for amateur hour.
- Not understanding the tax consequences of investments – Don’t try to know this area all by yourself. Every financial decision has a tax consequence. Be sure to have a …
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The Potential Of The BRIC Nations
Tuesday, February 16th, 2010
Brazil. Russia. India. China. These four nations have some of the fastest-growing economies on earth and are becoming drivers in the world economy. In the coming decades, they may command as much attention as the U.S., Japan and other “heavy hitters” … or more.
The future aside, we know one thing about the BRIC nations and other emerging markets: collectively, stocks in these countries have outperformed U.S. stocks for the last 20 years.
During this past decade alone, the MSCI Emerging Markets Index brought a total return of 102.4% while the S&P 500 posted a total return of -10.0% (-24.1% before dividends). Across the 1990s, the S&P 500 produced a total return of 432.0% – pretty impressive. Yet the MSCI Emerging Markets index posted a total return of 2408.6% for that decade.
Great volatility … but also great potential. If U.S. stocks soar or fall, emerging markets really feel the effect. We’ve seen them recoil in the first quarter of 2010. Yet short-term slumps aside, there are compelling …
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What’s In Your Retirement Investment Portfolio?
Wednesday, February 10th, 2010
The stock market is unsettled … and perhaps its fluctuations are unsettling you. It’s a stressful time for the economy and Wall Street, and you may be concerned about your portfolio given what’s going on with oil prices, the real estate market, and rising unemployment figures. It may be a good time to review how your assets are invested.
Is your portfolio balanced? A balanced portfolio may help you ride out stock market turbulence. Stocks and mutual funds aren’t the only asset allocation choices you have, and you won’t be alone this winter if you decide to examine other investment options.
Fixed annuities and Treasuries become attractive to investors when the market turns volatile. Bonds tend to maintain their strength when stocks perform poorly; fixed annuities are simply contracts with insurance firms, not correlated to stock market performance (though certain types of annuities may enable you to take advantage of stock market gains while maintaining your principal). Fixed-income mutual funds, dividend income funds and bond …
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Saving For The Self-Employed
Monday, February 8th, 2010
Whether you run a firm with dozens of employees or simply pick up some occasional freelance work, you have many ways to save for retirement. Here’s how to choose the right strategy for you from a recent interview I conducted with Fidelity.
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A Stress-Free Retirement
Wednesday, February 3rd, 2010
Retirement doesn’t have to be a stressful, daunting task. All it takes is a little planning. Learn more here with my interview in The Salt Lake Tribune.
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6 Wealth-Building Mistakes & How to Avoid Them
Tuesday, February 2nd, 2010
I was recently interviewed by Fidelity.com on wealth-building mistakes and how to avoid them. Read the full article here.
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Your Stock Market Correction Protection Plan
Monday, January 25th, 2010
Question: This stock market is nuts! How am I supposed to protect my IRA and 401k from losing money when I’ve only got three years until I retire? Bonnie, Ohio
Answer: A few years before retiring, if possible, you should begin to accumulate an amount of money that’s equivalent to 2-5 years worth of cash withdrawals (based upon your expected income needs). This systematic accumulation of cash is done on purpose so that you have a “safe-money” source to pull from when the balance of your investment portfolio and the stock and bond markets may be declining in value. Some people want one year of cash on hand. Some want two years of cash on hand. Some want more. It all depends on your comfort level.
Each time your portfolio exceeds a pre-established benchmark, you should systematically harvest the excess money above the benchmark, and put it in cash or short-term bonds (money market funds, CDs, and/or US …
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Scott Brown’s Victory will force Dems to fight for ObamaCare
Wednesday, January 20th, 2010
Scott Brown is the winner of Massachusetts Senate Race and, now, the first Republican senator from that state since 1972. He defeated his democratic opponent, Attorney General Martha Coakley, by a comfy margin. More than half of the state’s voters turned up.
This Republican victory in an infamously blue state means democrats no longer have a filibuster proof majority. This makes the future of Obama’s healthcare plan very uncertain. Indeed, the election has received an unprecedented amount of national coverage because of this. In- and out-of-state sponsors spent millions of dollars on advertising for both parties.
Obama was even in Massachusetts over the weekend campaigning for Coakley. It was reported shortly after that advisors to the President were less than optimistic about her chances. Many commenters on a CNN blog about the subject thought it was just a ploy to get Republican voters to think Brown’s victory was a sure thing so they’d sleep in and skip the polls. Both parties have criticized Coakley’s campaign …
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Experts Offer 10 Financial Tips
Monday, January 18th, 2010
Here’s a link to an article I was recently interviewed for by the Boston Herald. Enjoy!
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How to Get Out of Debt & Get a Job
Wednesday, January 6th, 2010
LiveStrong.com recently quoted me and published this article with 6 quick ideas you can use to reduce your debt and generate extra cash flow. Enjoy!
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Getting Your Retirement Back On Track After a Layoff
Tuesday, January 5th, 2010
NBC “Today” show financial editor Jean Chatzky picked my brain recently to help a viewer get their retirement back on track after being laid off six months ago. Get the 411 here.
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Refresh Your Retirement Plan
Monday, January 4th, 2010
New Year’s resolutions should not just be about losing a few pounds or learning a new language. They should also be about putting your retirement planning in order. Here’s a link to an article I was interviewed for in The Wall Street Journal this past weekend where I’m talking about a strategy I employ for my Private Clients called the “safe-money benchmark strategy”. Enjoy!
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Retirement Resolutions for Your 20′s, 30′s & 40′s
Tuesday, December 29th, 2009
Question: In a recent post you had strategies for strengthening your retirement picture for people in their 50’s and 60’s. What about those of us in our 20’s to 40’s? Maxine, Tenafly, NJ
Answer: Maxine, I didn’t mean to leave you and the other youngsters out. Here’s a checklist to get you on track in 2010 as well!
- If you haven’t started already, open an IRA and/or fund a 401k. These are generally the years when it’s toughest to scrape together the cash for investing, but starting young and having decades for tax deferred growth could provide a nice six or seven figure portfolio in retirement. At a minimum, save enough to get your full company match.
- Since you will likely have 2-4 decades before you’ll need this money, consider investing 70%-80% in equities/stocks. Do not be too conservative with your allocation.
- Remember that your ability to earn an income is your greatest asset so go back to school, continue …
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Retirement Resolutions for Your 50′s & 60′s
Tuesday, December 29th, 2009
Question: My husband and I (age 62 and 57) want to make some resolutions to sure up our retirement picture in 2010. Any thoughts you could provide would be greatly appreciated. Bea, Stamford, CT
Answer: Bea, here’s a checklist to get you on track in 2010!
- If you haven’t maxed out your 401k/403b contributions at work, you are eligible to take advantage of what is known as the catch-up provision. In essence, if you haven’t saved as much as legally possible every year you’ve been working, you are able to contribute an extra $5,500 per year (over and above the legal limit – $16,500) into your retirement plan in 2010.
- If you have a spouse, family and assets to protect, I think you should investigate long-term care insurance. Long-term care protects you and your family from the emotional, physical and financial pain that a health issue can have on them. Take advantage of 10-pay plans which allows you to pay …
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Getting Ready For Retirement?
Friday, December 18th, 2009
Here are some tips and advice I gave to my friend and NBC Today Show contributor Jean Chatzky. Enjoy!
Click HERE to read the story!
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Don’t Leave Home Without These Four Holiday Shopping Tips
Thursday, December 17th, 2009
I was recently interviewed by FOXBusiness.com about ways to save money during the holidays and how to stay out of debt. We’re only one week away from Christmas and if you’re still not done shopping here are some quick tips that can save you money. Enjoy!
Click HERE to read the story!
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