Retirement Watch Weekly
Using IRAs to Avoid the Fiscal Cliff
Taxes will increase, especially for investors, in 2013 and beyond. The only question is how high they will increase. The 3.8% tax on investment income that was enacted as part of health care reform will go into effect, as described on page five of this visit. The Bush tax cuts, payroll tax reduction, and other […]
Avoiding the New Tax on Investments
The Supreme Court upheld the Patient Protection and Affordable Care Act of 2010 (a.k.a., Obamacare). As a result, among the provisions that will go into effect in 2013 are the expanded Medicare taxes on high income taxpayers. Foremost among the new taxes is the 3.8% tax on the “unearned” income of single taxpayers with modified […]
Aging at Home
While the media often portray people as downsizing and moving as they age, most people resist. They want to remain in the homes they’ve grown comfortable in over the years. They also want to remain in the same communities where they have ties. It’s not an impossible dream. You don’t have to move simply because […]
Putting Draghi in Perspective
Global investment markets rallied strongly Friday after European Central Bank President Mario Draghi said the ECB would “do whatever it takes” to preserve the euro. That excited investors more than it should have, but I think it’s main effect was to cause a bunch of short sellers to take their profits for now. Often overlooked […]
Our Disfunctional Retirement System
Most Americans near retirement age aren’t financially prepared for retirement. Some people like to blame people for not taking responsibility, but the system of saving for retirement is poorly-designed. Congress put together a system that doesn’t work and couldn’t work given the realities of how people act and how careers develop. Sunday’s New York Times […]
The Case for a Recession
The economic data indicate that U.S. economic growth is slow and slowing, but it appears that it’s still positive. But a few analysts are asserting that the U.S. already is in a recession, including Lakshman Acuthan, John Hussman, and Mike Shedlock. Shedlock does a good job of collecting all the data and arguments in one […]
Inside California’s Big Pension Plan
California has the country’s largest pension fund, the California Public Employee Retirement System (CALPERS). It’s had mediocre to poor returns for years and delivered again recently, reporting about a 1% total return for its fiscal year ending June 30. This is well below the fund’s target rate of return, which means its unfunded liability increases […]
A Few Stock Market and Economic Charts to Study
Charts can be misleading, or they can tell you a lot. You have to study them carefully and understand why the data develops the way it did before concluding that the chart shows something meaningful. Otherwise, the chart is simply data mining. It might show a correlation between items but not necessarily a causation. The […]
