You’re 66 years old and married; your spouse is 65. You have no children. You were the higher earner, and making a little more than $175,000 before retirement. Your spouse was making $20,000 before retirement. You assume you’ll both live until 100. To maximize your spousal benefits, the higher earner should claim it at 67.
The idea is not widely implemented. But it has caught the attention of the Center for Retirement Research at Boston College, which published a research paper on the strategy last year. That is because many individuals face low levels of income in retirement. The typical working household ages 55 to 64 with access to a
One big question on investors’ lips today is whether bitcoin is risky or not. And the answer to that question is yes, according to financial advisor Ted Jenkin, CEO at Oxygen Financial. Bitcoin is a peer-to-peer digital payment system. And because of that, there’s no government involvement, no central authority and no FDIC insurance, Jenkin
Advisors should be aware of and sensitive to your tax situation, but sometimes problems may be hard to detect unless you know where to look. For example, the client may not disclose all the accounts he or she has, so an advisor won’t know how other accounts are invested, or more importantly, what the gain
The first step for impact investors, regardless of asset class, is to think about which issues or causes are important to them so that they can craft an investment strategy that’s in line with their values. “If you’re looking at traditional corporate bonds, then instead of investing in a company totally based on its credit
To that point, 30 years ago the retirement and bond market landscape looked quite different from the one we’re currently experiencing. In 1988, the 10-year Treasury yielded between 8 percent and 9 percent, and the inflation rate was about 4 percent. Additionally, many people who retired in the 1980s had pensions that covered most of
When plotted over time on a graph, the spread of the two rates normally forms a curve — the wider the difference, or spread, the more pronounced the curve. This curve is what’s known as the yield curve, though there are other curves involving yield differences. When long-term bond rates are higher (they usually are
Becoming too emotionally attached to investments can result in irrationally clinging to an asset longer than you should. This can be especially true of stock issued or sold to you by your employer. Taking an unrealistic view of your company stock can lead to a critical lack of portfolio diversification. Whether it’s being overconfident about
Your trusty college savings plan is no longer just for higher-education costs, thanks to the new tax law. Whether you have young children or grandchildren, you’re probably aware of the rising cost of higher education: The average annual cost of tuition, fees and room and board at a four-year private college rose 3.5 percent, to
This hasn’t been much of an issue in recent years, when the biggest concerns about inflation have been that it was too low. At a consumer level, inflation has been below 3 percent for the past 20 years, and it’s been less than 2 percent for eight of the 10 years since the Great Recession.
The median amount American investors age 65 and up — those nearing or already in retirement — have saved up for their golden years is a mere $64,811, according to Vanguard. While markets are currently soaring — and therefore boosting, for now, 401(k) account balances — people of all ages are woefully underprepared for the
There are two major factors you should consider when deciding whether or not to refinance your house: interest rates and home appreciation, said financial advisor Winnie Sun. If your house’s value has soared significantly but interest rates are up from when you first moved in, she said, you might want to hold off. “It may
Central to Americans’ confidence in our government is their confidence in our tax-collection system. Unfortunately, the Internal Revenue Service has not always earned that trust, undermining this system of voluntary compliance and taxpayer engagement. Fortunately, this has been a bipartisan issue in the past, and we believe a bipartisan proposal exists to once again solve
“Anything that is international equities excludes the U.S.; therefore, it is much easier for those managers to outperform,” said Frank Talbot, Citywire’s head of investment research. “There’s a lot of good managers in international equities, where the outperformance is above 50 percent, meaning that more than half of the fund managers add value in those
Not everyone will wind up needing care in an assisted-living facility in old age, but everybody should plan for it, just in case. “When people hear the term ‘long-term care,’ they immediately think, Oh, my gosh, long-term care insurance. That’s for old people,” said certified financial planner Marguerita Cheng, CEO of Blue Ocean Global Wealth.
Determining the mix of investment types is one of your most important tasks as an investor. Every investment has different strengths that allow it to play a specific role in your overall strategy. For instance, some investments may provide regular income while others may serve as a temporary place to hold for cash. Some even
Start with the Securities and Exchange Commission and/or the state the fund is registered in, and check for all disclosures and any negative press that has occurred. Research the tenure of the portfolio manager(s), and research not only their SEC and/or state information but also any personal information that is unusual about the manager(s). Subscribe
The company you work for may let you purchase company stock at a discounted price. The formal name for this is an “employee stock purchase plan,” or ESPP. And if used correctly, these stock purchases can boost your bottom line, according to Sophia Bera, founder of Gen Y Planning. Here’s how it works. Your company
Thanks to the internet, it’s easy to spend money these days. Retailers offer us endless ways to automate our purchasing. They show us products we’ve looked at, and they offer one-click purchasing and send emails reminding us that we’ve left something behind in a cart. Fortunately, we can turn the tables. We can use that
2. What should I do with distributions? Generally, distributed money is subject to income taxes and a 10 percent early withdrawal penalty if you’re under 59½ years old (except in certain circumstances). If you want the money before you reach 59½, you’ll pay 20 percent to 40 percent in taxes and penalties. Federal rules require
All states have a framework that dictates how your cash and belongings ought to be distributed when you die. These are known as intestacy laws. Generally, under these laws your estate will pass to your closest living relative: your spouse, your kids, your parents and your siblings. These laws also state how assets are divided
You usually have the choice of receiving payments for the rest of your life (a single-life annuity) or selecting from a variety of survivor options (joint and survivor annuity) that allow for your beneficiary to continue receiving payments after your death. If you choose payments for your life only, your monthly income will be higher.
Meanwhile, an appeals court’s recent decision to vacate the Department of Labor’s fiduciary rule leaves many investors at risk of losing chunks of their savings to hidden fees and conflicts of interest from unscrupulous brokers — the very same people who Americans trust to help them achieve their retirement goals. Investors, however, can take ownership
If you’ve managed to pull together a strategy for your personal finances, odds are it’s not the right one for you. That’s because many financial plans fail to consider the unique characteristics of an investor’s life, including his or her biases and the fluidity of investing goals, said Joe Duran, founder and CEO of United
Jack Guez | AFP | Getty Images Bitcoin is a borderless digital currency that eliminates the need for a bank. Therefore, understanding this concept hinges on conceiving financial transactions without banks. Perhaps less surprising is that predictions of bitcoin’s demise fail to account for technological factors. Bitcoin is, after all, technology, but you don’t have
Bezos found his enlightenment from the decision to leave Wall Street at the age of 30. “The wake-up call,” Bezos has been quoted as saying, “was finding this startling statistic that web usage in the spring of 1994 was growing at 2,300 percent a year.” “You know, things just don’t grow that fast,” he has
If you’re looking for a sector that’s poised to grow, think technology. Certified financial planner Ted Jenkin, CEO of oXYGen Financial, predicts there will be strong growth in this area in the next five to 10 years. And there are three areas within this sector that could see the biggest boost. 1. Artificial intelligence. The
People in this age group likely will have decades before needing to withdraw money from an investment portfolio, such as a 401(k) plan. Because this money won’t be needed for such a long time, I typically recommend at least 80 percent of an investment portfolio in stocks. By way of example, a 30-year-old who invests
Like many market analysts, Rusnak is troubled by the flattening yield curve. Markets could be in panic mode by late next year if the flattening yield curve turns into a full-on inversion, but it won’t turn into a massive sell-off, Erin Browne, head of asset allocation at UBS Asset Management, told CNBC. She believes the
For some, working in retirement, particularly work that centers around a person’s passion, can be fulfilling in a variety of ways. To that point, the “out to pasture” stereotype linked to retirement, particularly in the United States is now stale and untrue. As wealth managers for 22 years, we have watched many clients engage in