When you buy an annuity you enter into a long-term relationship with the insurance company that offers the product. For this reason, your primary consideration when comparing annuity products is the financial strength of the insurance company behind the product.
An annuity contract can last for decades, and you need a financial partner that will be around
Continue reading When You Buy an Annuity What to Look For In the Insurance Company
When you shop for an annuity look for one that is right for your goal and objective.
High Level of Guaranteed Income Now
If your objective is to generate the highest possible amount of guaranteed monthly income starting now, you will want to look at a single-premium immediate fixed annuity. Single premium means that you are paying for
Continue reading Get an Annuity to Meet Your Goal and Financial Objective
Investors’ attitudes today are characterized by ambiguity. Investors don’t know even what the possible outcomes may be, let alone the probability that they might occur. Without a familiar context for financial decision making, it’s easy to become emotionally paralyzed.
The difference between uncertainty and ambiguity may sound like little more than semantics. But neuroimaging studies have found that
Continue reading Investing Inertia – Overcoming Fear to Reach Your Financial Goals
There are ways to increase your yield on cash and short-term investments – without taking on excessive risk.
It can be done without committing either to long-term bonds or to the volatility that can come from dropping down too far in credit quality.
First determine how much of your short-term investments are for immediate needs and has to be easily
Continue reading How You Can Increase Your Yield on Cash and Short-Term Investments
An important retirement concern for many of us that affects our wealth protection and accumulation is on how best to make a rollover decision when changing jobs.
On a recent 401(k) Benchmarking Survey conducted by Deloitte, 22 percent of employers surveyed revealed that their employees find rollovers to be the most confusing part of their retirement plan.
Continue reading The Retirement Account Rollover: How to Preserve Your Wealth
When you believe inflation is a risk for your portfolio you can move money into some of these investments to protect your wealth.
Treasury Inflation-Protected Securities
Rising inflation is especially harmful to investors in fixed-income securities, as the purchasing power of a bond’s principal amount, usually $1,000, is lower at maturity when interest rates are higher than
Continue reading Investing When You Believe Inflation Is A Risk To Your Portfolio
If you are maxing out your 401(k), IRA and any tax-deferred or tax-exempt retirement account, or you want to diversify across taxable and non-taxable holdings, you are in luck.
There are investments that can give you a diversified global portfolio at very low cost. If you are diversified, you don’t have to worry about your wealth
Continue reading Index Funds, Tax-Managed Funds and ETFs – Low-Cost, Diversified
Some investments have risks to avoid.
Funds that use futures and options try to amplify their returns. They try to return two to three times the daily returns of their target index. The funds mirror daily returns, not long-term performance.
Natural Resource Investments
Fake oil deals show up when the price of gas or oil begins to soar.
Gold and Gold
Continue reading Investment Risks to Avoid
When you’re putting money away for college and retirement simultaneously and both goals are near, you might be tempted to split the savings between a 529 account and an IRA or 401(k).
If you near retirement the retirement account should get the bulk of your saving dollars. Especially when you consider that money withdrawn from
Continue reading Balancing Retirement and College Saving
The many variations of retirement accounts makes building wealth a bit complicated. Adding to the complexity is the issue that many retirees and retiree-want-to-be’s face: when is it advantageous to convert a non-Roth IRA to a Roth IRA?
The best time to do the conversion is when the market has tanked because when you roll
Continue reading Timing a Roth Conversion
When households have investment assets and are planning to augment their cash flow with an income stream from those investments annuities offer one option.
To use an annuity typically means to make a one-time payment to an insurer for the promise of receiving regular payments at a defined rate of interest.
Since an annuity is an insurance
Continue reading Immediate Fixed Annuities
To build net worth you want most of your investing dollars going to work for you. To do that you want to reduce investment expenses. There are several options that allow you to invest at low cost. One of these is the use of an ETF.
An ETF is an exchange-traded fund.
Continue reading Use an ETF to Build Net Worth
Whether to keep stocks in retirement accounts is an important question. The answer partly depends on whether the stocks are directly owned or whether you are investing in stocks through a mutual fund.
If the stocks are individually owned then certainly ownership outside of a retirement account makes sense. With direct ownership you are
Continue reading Stocks in Retirement Accounts
There are so many retirement accounts to choose from. Which one is the best one?
When comparing how taxes are deducted the Roth version is the opposite of the traditional non-Roth account. With a Roth version of the IRA, 401(k) or 403(b) you get your tax break when you withdraw the funds.
Continue reading Retirement Accounts – Roth for your IRA or 401(k) – Which Type is Best?
To convert a regular IRA or 401(k) to a Roth IRA (assuming 28% tax bracket) use these steps to look ahead at your tax bill:
Step 1: Enter the total value of all of your IRA and 401(k) funds (non-Roth) (Example: $150,000)
Step 2: Enter the total of your nondeductible contributions for the year (Example:
Continue reading Roth Conversion Tax Calculation
One of the biggest investment decisions we all make is whether to invest passively or actively, regardless of whether we invest directly or hire somone to invest for us.
Mutual funds and exchange traded funds (ETFs) give us choices, including whether our money is actively managed.
One of the best, low-cost moves a passive investor can make
Continue reading Index Funds or Managed Portfolio