Retirement Watch Weekly
Interpreting The Yield Curve
Financial analysts have spent a lot of time this year discussing the yield curve. Specifically, they’ve pointed out that the yield curve is almost flat, and that an inverted yield curve almost always leads to a recession. They’re worried that the yield curve says a recession isn’t too far away. In this article, a Federal […]
Holding Steady through Short-Term Market Turbulence
Markets continue to have trouble establishing trends in 2018 as investors respond to contradictory short-term events. Commodities recently took a break from their extended rally. iShares Commodities Select Strategy (COMT) is down 3.04% over the last four weeks and 3.70% over three months. The fund now is up only 5.13% for the year to date. […]
Weighing Positives and Negatives in Today’s Markets
Headwinds and tailwinds continue to tussle against each other, confusing the outlook for investment markets and the economy. For several years, synchronized global monetary expansion provided floors under stocks and the economy. But the Federal Reserve is now tightening monetary policy, and other central banks, with the exception of Japan’s, are preparing to follow suit. […]
5 Mistakes and Myths That Can Spoil a Successful Retirement
Key issues about retirement finances are misunderstood by many Americans who are retired or within 10 years of retiring, reducing the probability of having a successful retirement. The misinformation and confusion covers the spectrum of retirement finance topics, according to a survey conducted for Nationwide Financial Services. Mistake #1: About 72% of respondents worried that […]
The New Kiddie Tax: How It Might Change Gift Giving
Before making gifts to children and grandchildren, carefully consider the new kiddie tax. The Tax Cuts and Jobs Act greatly simplified the Kiddie Tax. The tax was imposed in the Tax Reform Act of 1986 on unearned (investment) income of children. The idea was to end income splitting. That was the practice of high-income earners […]
What You Need to Know about the New AMT
The Alternative Minimum Tax (AMT) has changed, and it won’t trap nearly as many people as in the past. The AMT is perhaps the original Stealth Tax. When created in 1969 it was targeted at wealthy individuals who used a lot of tax breaks to avoid paying any income tax. But Congress didn’t adjust the […]
The Most-Asked Roth IRA Question
This month we’re going to look at what lately has been the question I’m asked the most distribution from a Roth IRA isn’t tax free until at least five years have passed. Longtime readers know I believe rules of thumb and shortcuts are dangerous, and this is a good example. The summary stimulates a lot of […]
Recent Rules Your Power of Attorney Agent Needs to Know
You need to be sure the person who holds your financial Power of Attorney (POA) is aware of the recordkeeping and other requirements. POAs are relatively new, so the rules and standards have been evolving. POAs were first standardized in 1969 in the Uniform Probate Code published by the National Conference of Commissioners of Uniform […]
