Archive for 'October 2015'

    Few Changes to Retirement Plan Contributions and Income Limits in 2016

    October 29, 2015 5:36 PM by Brian Dobbis

    The absence of inflation in the economy precludes the IRS from raising income eligibility and contribution limits on retirement savings plans. 


    On October 21, 2015, the IRS released both the 2016 income and contribution limits for qualified plans and IRAs. As expected, most of the key limits remain flat from 2015 because the cost-of-living index did not rise sufficiently to trigger a statutory adjustment.

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    Did the Fed Just Put a December Rate Hike on the Calendar?

    October 28, 2015 4:30 PM by Zane Brown

    A change in language in the U.S. Federal Reserve's October policy statement may signal a greater probability of a December tightening. 

    The U.S. Federal Reserve (Fed) sent financial markets a “save the date” card on October 28. The date in question is December 15–16, when the Federal Open Market Committee (FOMC), the Fed’s policy-setting arm, will hold its next  policy meeting. 

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    Picking Stocks in the War on Alzheimer's

    October 27, 2015 3:50 PM by Lord Abbett Editorial Staff

    Much is riding on new drugs that may slow the disease, says Lord Abbett Partner and Research Analyst Lavina Talukdar.

    During her 15 years of covering the pharmaceuticals and biotechnology sectors, Lord Abbett Partner and Research Analyst Lavina Talukdar has plumbed the pipelines of a number of companies to assess which drugs have the potential to transform the Alzheimer’s market.

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    Puerto Rico Looks for a Lifeline from Washington

    October 23, 2015 2:40 PM by Daniel S. Solender, CFA

    A White House proposal that would allow the commonwealth to file for bankruptcy drove down prices of Puerto Rico municipal bonds, but the offer likely has little chance of passage in Congress. 

    With the end of 2015 drawing closer, Puerto Rico continues to move slowly on making any meaningful changes to its troubled fiscal situation—and the status of its $72 billion in municipal-bond debt. Deadlines keep passing without creditor agreements for restructuring the debt of one of the island’s main muni-bond issuers, the Power Authority. And the commonwealth has not had any success in negotiations with creditors of another key issuer, the Government Development Bank.

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    Heir Care: The Importance of IRA Beneficiary Designations

    October 15, 2015 3:10 PM by Brian Dobbis

    Make sure you are clear about what you’re leaving to whom and that your beneficiaries understand their inheritance options.


    Completing and periodically reviewing beneficiary paperwork is the single most important administrative task a retirement plan participant can take. Overlooking this seemingly easy step can lead to the wrong individual(s) inheriting your retirement nest egg.

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    A Steady Hand in Volatile Times

    October 8, 2015 3:50 PM by Brian Dobbis

    Advisors can't control market movements, but they can offer their insight and expertise to retirement investors—especially as to the timing of key IRA strategies.


    The market gyrations we’ve experienced in recent months have caused some investors to incur losses in the values of their individual retirement accounts (IRAs). While no one wants stocks and bonds to take it on the chin, such volatility can serve as a useful reminder of how advisors add value to the process of investing for retirement, especially when it comes to Roth IRAs.  

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    Corporate Bonds: A Stampede of Elephant-Sized Deals Hits the Street

    October 6, 2015 3:20 PM by Andrew H. O'Brien, CFA

    What lies behind the surge, however, has more to do with boosting stock prices than funding organic growth.

    It wasn’t too long ago that a multibillion-dollar corporate bond issue created a lot of excitement on Wall Street, but now transactions of $10 billion or more (so-called “jumbo” or “mega” bond deals) are commonplace. The numbers are eye-popping. But investors are best advised to look beyond the data and understand what’s really going on.

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    Labor Surprise

    October 2, 2015 5:45 PM by Zane Brown

    September’s disappointing jobs report stifles expectations of a Federal Reserve rate hike this year. 

    The September jobs report was both disappointing and alarming to many investors. Expectations were for another month of 200,000 or more new jobs, with confidence that the weak August report would be adjusted higher. Neither expectation was met, however.

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    Shelter from the Storm

    October 2, 2015 1:25 PM by Lord Abbett Editorial Staff

    When high fliers hit turbulence, stable-growth stocks, such as best-of-breed homebuilders and a home-improvement products retailer, gain favor, especially in a promising housing recovery.

    In light of the recent equity-market pullback, some portfolio managers have taken a series of steps to help mitigate volatility.

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    Clarifying Nondeductible IRA Contributions

    October 1, 2015 5:30 PM by Brian Dobbis

    Nearly 30 years after their creation, aftertax IRA contributions still cause confusion.


    Nondeductible (aftertax) IRA contributions were first permitted in 1987. Almost three decades later, a number of common misconceptions continue. Two of the more common involve eligibility and determining tax liability for accounts containing both pre-tax and aftertax dollars.

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