Retirement Watch Weekly
Controversy About Social Security Replacement Rates
I wouldn’t have thought that replacement rates would be a controversial topic, but they’ve become one. Social Security routinely has reported that at median income levels, Social Security retirement benefits replace about 40% of pre-retirement income. The SSA invited criticism, however, when it dropped replacement rates from the latest annual trustees’ report. It turns out […]
The Post-Brexit Global Stock Rally Continues
Inflation for the next year or so is likely to be higher than most investors and the markets are expecting. Once investors realize this, there will be changes in market prices on investments such as for longer-term bonds because today’s prices are based on expectations that inflation won’t increase for years. We’ve probably seen the […]
Markets Rise as Forecasters Stumble
Investors have a lot to worry about, and they know it. Unfortunately, investors often worry about the wrong things, or they take the wrong actions in response to their worries. Britain’s vote to leave the European Union (EU), which occurred after our last issue, is a great example. Markets for risky assets (stocks and commodities) […]
The Tricks and Traps of Taxes on Gold Investments
Gold is on investors’ minds again. The bear market that began in 2011 is over, and gold was up more than 28% in the first half of 2016. Gold could rise higher because of the consequences of Britain’s vote to leave the European Union and the potential for central bank mistakes. Before adding gold to […]
How Much of Your Nest Egg Should be in Annuities?
Should more of your retirement income come from annuities? For most of you, part of your retirement income already is delivered as an annuity payment. Social Security is an annuity, providing guaranteed income for life. It also has the bonus of being indexed for inflation. Most economists recommend people purchase immediate annuities with part of […]
Taking Advantage of the True Self-Directed IRA
A world of investment opportunities is open to individual retirement accounts (IRAs). In addition to stocks, bonds and mutual funds, your IRA can invest in real estate, private businesses, hedge funds, mortgages, tax liens and more. But most IRAs can’t take advantage of the flexibility the law allows, because the custodians and trustees restrict the […]
How to Avoid Having An Obsolete Estate Planning Strategy
An estate plan needs regular maintenance, and sometimes an overhaul. Otherwise, a great plan can become obsolete or flawed, or even a clunker. Much like many types of property, if an estate plan is neglected, time and outside forces can cause it to decay or break down. As much as we’d like to work on […]
Analysts Usually are Wrong
This article has an interesting exercise. The author asks whether a value stock investor should use the historic price-earnings ratio or the forward (or forecast) price-earnings ratio to decide whether a stock is cheap. Many studies have shown that using historic data and buying the cheapest stocks delivers a higher return than the market indexes […]
