Employees today are required to make many critical decisions that have a material impact on their future. One of them is whether or not they should participate in their company’s stock purchase plan if offered. Stock purchase plans are known alternatively as ESOPs, Employee Stock Ownership Plans and ESPPs, Employee Stock Purchase Plans. One advantage to participating is to get the discount that is offered which can be as much …Read More
Junk bonds turn up the risk for retirees
In a “normal” interest rate environment, a retiree fortunate enough to have $1 million could get about $45,000 a year in income by investing in 10-yearTreasury bonds without risking principal if held to maturity. Yields have recently risen from historic lows, but in today’s low-rate world, an investor with $1 million can only get an annual income of about $25,000 by investing in 10-year Treasurys. For the last five years, …Read More
