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Fifty-four percent of American workers have saved less than $25,000 for retirement, and 43% have saved less than $10,000.1
Will you outlive your retirement income? How much liability insurance should you have? Should you add stocks to your portfolio? Are your financial expectations for the coming year realistic?
Our financial newsletters are designed to provide helpful information on a wide variety of financial topics. Simply click on one of the newsletter topics below to read the article in its entirety.
Before implementing any strategy discussed herein, you should consult with your own financial, tax, and/or legal advisors to determine its applicability in light of your own situation.
Most insurance policies and annuity contracts contain exclusions, limitations, reductions of benefits, surrender charges and terms for keeping them in force. Your representative can provide you with costs and complete details.
The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties. These articles supports the promotion and marketing of this [life insurance, annuity, long term care, disability, pension, etc. You should seek advice based on your particular circumstances from an independent tax advisor.
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July
HOT TOPIC: Are Housing Troubles Standing in the Way of Growth?
In the wake of past recessions, the housing industry provided a meaningful economic boost. This time around, the pace of the recovery has been more sluggish than expected, and ongoing weakness in the housing sector may be to blame.
Tips for Surviving the Estate Tax
The federal estate tax was reinstated retroactively to January 1, 2010, by the 2010 Tax Relief Act. However, the favorable provisions are scheduled to expire at the end of 2012, when estates exceeding $1 million could be subject to the federal levy.
Finding a Good Time to Invest
When a prominent stock market index closes above an important threshold, many investors who have been sitting on the sidelines may see it as good time to invest, but they may have missed a significant part of the rally. Waiting for the "right" moment to invest could prove to be a costly and ineffective strategy.
Favorable Dividend and Capital Gains Tax Rates Extended—for Now
The 2010 Tax Relief Act extended the 15% maximum tax rates on qualified dividends and long-term capital gains through December 31, 2012. But without further legislation, dividends will be taxed at ordinary income tax rates and capital gains tax rates will return to 20% (23.8% for investors in the two highest tax brackets) in 2013.
Managing Cash When Interest Rates Are Low
It's generally a good idea to keep three to six months of income in an emergency fund, but where should cash be kept when interest rates are low? This article discusses the advantages and disadvantages of savings accounts, certificates of deposit, and money market funds.
Put It in Writing
A high level of job satisfaction is fairly typical of business owners, but it can also be a hindrance if it keeps them from thinking about a planned exit strategy. A written exit plan could help you avoid surprises.
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June
Using a Variable Annuity for Guaranteed Income
One recommendation from the White House Task Force on Middle Class Working Families was for retirees to consider purchasing annuities to help provide a stable income. Investors who want their retirement portfolios to go the distance might want to learn more about variable annuities.
The Difference Between the Debt and the Deficit
The terms "debt" and "deficit" are often used interchangeably to describe the federal government's financial situation, yet they have significantly different meanings. This explanation of the budget deficit and the national debt may help readers understand the conversation.
Deciding When to Begin
Waiting until full retirement age (or up to age 70) to claim Social Security may result in significantly higher monthly benefits. At age 62, the earliest age to claim Social Security, the amount received could be only 70% of the benefit received at "full retirement age" (which ranges from age 65 to 67 depending on year of birth).
Understanding the Appeal of Mutual Funds for High-Income Households
Mutual fund ownership increases directly with household income. In fact, 81% of households with incomes of $200,000 or more own mutual funds. What is it about mutual funds that attracts affluent investors?
Tax Law Keeps S Corporations Attractive
S corporations are more common than C corporations and partnerships, perhaps because they are not subject to the corporate tax. Instead, profits and losses flow directly to shareholders, who are currently taxed at lower individual income tax rates. Read why reorganizing as an S corporation may be a smart move.
HOT TOPIC: Current Economic Conditions and the Prospect for Inflation
Inflation jumped up to 3.2% in April. That’s still below the 50-year average but it may be little consolation for anyone who has been to a gas station or a grocery store recently.
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May
HOT TOPIC: Debating the Debt Ceiling
There has been substantial debate in Congress over raising the ceiling on the national debt. Although many Americans could be adversely affected if Congress decided not to increase the debt ceiling, this is unlikely to happen.
Fixed for Life
More than 40% of Americans ages 36 and older are at risk of running out of money in retirement, according to a retirement readiness study. In fact, almost one-third of people with upper-middle incomes and 13% with high incomes may not be able to pay for basic retirement expenses and uninsured health-care costs after two decades in retirement.
Giving the Gift of Knowledge
A college education is still a good investment. Consider this statistic: The overall unemployment rate reached as high as 9.9% in 2010, but for workers with a bachelor's degree or higher, it did not exceed 5.1%. But a college education can be expensive. There is a tax-advantaged way to accumulate money for a child's or grandchild's education: a Section 529 plan.
Help an Inheritance Help You
When Americans were asked what they would do with a large inheritance, 48% said they would save it; only 8% said they would spend it on things they've always wanted. Could the Great Recession be changing attitudes about money? There are some options to consider for those who expect to receive, or have already received, an inheritance.
Never Retire? Don't Count on It
In a recent survey, just 40% of wealthy individuals indicated they are totally confident they will have enough money for retirement. The other 60% said they will shun traditional retirement and work as long as possible. However, it could be dangerous to believe that a retirement income shortfall can be overcome by working past the traditional retirement age.
Building a Business Versus Building Wealth
The market for small businesses has been less than ideal over the past few years. Thus a business owner's efforts to build a successful business may not always translate to an increase in personal wealth. One way to insulate a business owner's personal financial situation from the fluctuating small-business market is by investing outside the company.
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April
HOT TOPIC: Eye on Japan's Recovery Within a Recovery
Japan’s economy hasn’t been on solid ground since the 1990s, but now it must grapple with rebuilding after an earthquake, tsunami, and nuclear accident that have caused economic losses expected to surpass $300 billion. What is the outlook for Japan and the effects the nation's disasters could have on the world economy and financial markets?
Consider Your Retirement Needs, but Don't Forget Your Retirement Wants
A rule of thumb is that workers will need to replace about 80% of their pre-retirement incomes to maintain their standard of living in retirement. But they may need more than 80% to fund a lifestyle that they can truly look forward to. As people grow older, what once may have been considered luxuries can become basic needs.
Making Money Market Funds Work for You
Some investors turn to money market funds when they are concerned about market volatility. Although money market funds may carry less risk than stocks, investing in them as a reaction to market volatility also carries the risk of missing out on potential gains when the market begins to recover.
Dispelling Umbrella Insurance Myths
Many people may think their chances of being hit with a multimillion-dollar lawsuit are fairly slim. Besides, wouldn't the liability coverage on their homeowners and auto insurance policies be enough to protect them against a claim or a lawsuit? Unfortunately, there are misconceptions about umbrella liability insurance that could cause someone to be underinsured.
How Interest Rates Can Influence Financial Decisions
The Federal Reserve has relied on its control of short-term interest rates to influence economic activity. Adjusting interest rates might seem to be an overly simple solution for steering the world's most powerful economy, but few mechanisms can influence behavior more effectively than interest rates.
Protect Your Business with a Disaster Readiness Plan
Most people think of hurricanes, tornados, and earthquakes as events that could seriously affect the operations of a business and result in shortages of goods and materials. But even a fire or a flood in the warehouse can cause operations to come to a grinding halt. By one estimate, one-quarter of businesses never reopen after a major calamity.