The equity markets are generally forward-looking. That’s why you have price movements that seem incompatible with the latest economic (backward-looking) data. The equity market today, as seen through the eyes of the S&P 500, has been flirting with all-time highs while the economic data indicate that the economy continues on feeble legs. So, just as the “forward-looking” market has predicted 25 of the last 8 recessions, so too, it can …Read More
Tag Archives: retirement
What women need to know when they retire
Originally published on Marketwatch.com’s website http://www.marketwatch.com/story/retirement-planning-considerations-for-women-2015-02-02?link=mw_home_kiosk Young people entering the workforce need to educate themselves about the retirement-planning process. Women in the early stages of their retirement planning should be aware that they will face some different challenges than their male coworkers. One of the key differences is life expectancy. On average, women live longer than men do. Girl babies born today will live almost 81 years, while boys are …Read More
What you’re really paying in 401(k) and IRA fees
Originally published on Marketwatch.com http://www.marketwatch.com/(X(1)A(NCs7wM73zAEkAAAAN2FjYzUwM2EtMjcyMC00NGZhLTg2NzktMDdkYTk2OWFiYmJhWd_GBHQPhVYaf0xxk3ruPENcrgw1))/story/what-youre-really-paying-in-401k-and-ira-fees-2014-09-29 You’re probably paying more than you realize. A recent study by the Federal Reserve, the Survey of Consumer Finances, found that Americans’ retirement savings in IRA and 401(k) plans are not quite as solid as they should be. If you’re going to be successful with your retirement savings, it is critical that you understand the fees and expenses you are incurring. AARP did a survey …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
ZIRP and bond risk
ZIRP is an acronym that stands for “zero interest rate policy.” For the last five years, the Fed has employed a zero interest rate policy to help stimulate the economy. Investors need to understand all of the risks that their hard earned investment dollars can be exposed to. Most investors buy stocks and stock mutual funds when they’re in the accumulation phase of their retirement planning. As they age they …Read More
