Narrowly defined, investing is a process by which individuals and institutions endeavor to make gains on the money they have saved. The basic purpose of investing is to make money with money, while taking as little risk as possible. There are many reasons, beyond the basics, for holding an investment portfolio.
Read MoreDepending on your tax bracket and the type of gains realized, the IRS can chew up to 43.8% of it in taxes.Simply put, tax efficiency is a measure of how much of an investment’s return is left over after taxes are paid. Tax efficiency shouldn’t become so much of the focus that it degrades your portfolio performance; rather it should help preserve gains as much as possible.
Read MoreBonds are an important part of a well diversified investment portfolio. They are widely viewed as a safe, low risk component for investment allocations, with an aim of preserving capital and generating income. Bonds function like loans. Investors provide money for a period of time to finance projects. When the bond matures, the principal is returned, and interest is paid along the way.
Read MoreIt’s only natural that investors are keenly focused on the returns of their portfolio. Everyone wants to know how they’re doing, and how much their portfolio is appreciating. Before the days of 24-hour news, smart phone apps and websites providing minute-by-minute market news, investors were satisfied seeing positive long-term returns.
Read MoreThe quickly changing market landscape makes it more difficult for investors to figure out what strategies will help grow their portfolio. Just when you think you’ve adjusted for market factors, like low interest rates, something new gets thrown into the mix. Uncertainty and the changing marketplace is one reason that investors may want to consider adding dividend-paying stocks to their portfolio.
Read MoreSince the passing of the Employee Retirement Income Security Act (ERISA) in 1974, the Department of Labor (DOL) has had authority to protect tax-deferred retirement savings accounts. In April 2016, under the Obama administration, the DOL announced a new fiduciary rule for 401(k) and Individual Retirement Accounts (IRA).
Read MoreSince the passing of the Employee Retirement Income Security Act (ERISA) in 1974, the Department of Labor (DOL) has had authority to protect tax-deferred retirement savings accounts. In April 2016, the DOL announced a new fiduciary rule that will have a huge impact on 401(k) and Individual Retirement Accounts (IRA).
Read MoreThe Freedom of Work Act, which was passed in 2000, changed social security rules to provide benefit options for individuals who either continued to work, or returned to work after filing for social security benefits. Specifically, the rules allowed an individual to suspend their benefits after filing. While suspended, the benefit amount went up each year, earning delayed retirement credits.
Read MoreNot long ago, the prescription for investing for retirement was simple. Save as much as possible while working, and gradually become more conservative with your investments as retirement approaches. This strategy was frequently implemented in the past by converting growth oriented portfolios, which were comprised mainly of stocks, into income oriented portfolios, which focused more on fixed income or bonds.
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