Archive for 'December 2015'

    Before Pouring That Champagne, Pore Over Your Year-End IRA Checklist

    December 28, 2015 10:00 PM by Brian Dobbis

    How's this for an New Year’s resolution? Toast to a fatter nest egg. 


    Should old finances be forgot, and never brought to mind? Of course not. Before you get into the New Year’s spirit, consider these important questions:

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    How Could ECB-Fed Divergence Affect LIBOR?

    December 28, 2015 11:45 AM by Zane Brown

    Here’s a look at how the benchmark lending rate might respond to the differing policy paths of U.S. and European central banks.

    How can we expect LIBOR—more formally, the London Interbank Offered Rate—to react if the European Central bank (ECB) is aggressively easing its monetary policy while the U.S. Federal Reserve (Fed) does the opposite?

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    RMD Alert: Know Your Rules on IRAs and 401(k)s

    December 23, 2015 12:20 PM by Brian Dobbis

    Different rules apply to IRAs and 401(k) plans when it comes to taking required minimum distributions. Be sure you follow the right ones. 


    (Third in a three-part series)

    Becoming a septuagenarian may be a jolt, but Uncle Sam wants you to tap some of your nest egg, whether you want to or not.  

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    RMD Alert: How to Avoid Minimum Distribution Mistakes on IRAs

    December 17, 2015 2:40 PM by Brian Dobbis

    Failure to comply with minimum distribution requirements can cost your client a bundle. Such mistakes are happening more frequently as investors stay in the workforce longer.


    (Second in a three-part series)

    As much as senior citizens want their nest eggs to last a long time, they generally have to start taking required minimum distributions (RMDs) from their individual retirement accounts the year they turn 70½. 

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    The Fed Awakens

    December 16, 2015 4:13 PM by Zane Brown

    The long-awaited interest rate hike by the U.S. Federal Reserve is now a reality. Perhaps more important to investors, policymakers indicated that they may not be in a rush to tighten further. 

    As the NASA hands at Mission Control might say, “We have liftoff.” The U.S. Federal Reserve’s (Fed) policy-setting arm, the Federal Open Market Committee (FOMC), delivered its long-promised 25 basis-point increase in the fed funds rate at the conclusion of its meeting on December 15–16. The Fed’s last rate hike was in June 2006.

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    The Fed: Why This Rate Hike Will Be Different

    December 15, 2015 2:46 PM by Zane Brown

    The anticipated tightening move by the U.S. Federal Reserve on December 16 would feature some new wrinkles. Here’s an explanation of the process.

    A December rate hike by the U.S. Federal Reserve (Fed) will be the first such move since June 2006. For many advisors, it will be the first rate hike in their career. It also will mark something of a first for the Fed, too.

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    Will a Fed Hike Spell Trouble for the Yield Curve?

    December 14, 2015 10:47 AM by Timothy Paulson

    The central bank likely will raise rates at its December meeting. But the move may not play out in the markets the way investors think.

    With markets finally pricing in an imminent rate hike by the U.S. Federal Reserve (Fed), it is time to focus on what may come afterward. 

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    2016 Outlook: Value Managers Share Their Views on Earnings Trends for Key Sectors

    December 10, 2015 3:07 PM by Lord Abbett Editorial Staff

    Some earnings estimates in hardest-hit sectors still look too high. 

    Lord Abbett partners Justin Maurer and Tom Maher, the portfolio managers of the micro, small, and smid-cap value products, have updated their earnings and sector outlooks for 2016. Of course, earnings estimates are largely dependent on sectors/end-market exposure, but this is more extreme than usual, given current problems within the energy, materials, and industrials sectors.

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    RMD Alert: Deadline for Minimum IRA Distributions Approaches

    December 10, 2015 2:30 PM by Brian Dobbis

    Investors who are required to take required minimum distributions from their IRAs generally must do so by December 31. Here are some things they should know.


    (First in a three-part series)

    In all the presentations I’ve given to financial advisors this year, one of the most consistent topics of discussion focused on required minimum distributions (RMDs) from IRAs.

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    China's Latest Tech Push

    December 8, 2015 4:03 PM by Lord Abbett Editorial Staff

    China, the world’s largest consumer of semiconductors, is moving aggressively into manufacturing them, which threatens producers in Korea and Taiwan.

    Although China consumes half of the world’s semiconductors (see Chart 1), it doesn’t have a single domestic manufacturer among the 10 biggest chipmakers, according to Bloomberg News. Taiwan and South Korea account for the lion’s share of production. But with China’s government pushing to grow its own semiconductor industry for national security and lessen its dependence on foreign technology, recent deal making suggests a new world order may be in the offing.

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    How to Reject an IRA Inheritance

    December 4, 2015 10:03 AM by Brian Dobbis

    Can a direct beneficiary of an IRA disclaim the inherited account in order to pass it on to a contingent beneficiary? Yes. Get the details in this disclaimer explainer.


    Let’s assume that more than a few of your clients will inherit an IRA from a close friend or relative someday. You will want to help them navigate the emotional and financial minefield that goes with that experience.

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    Fishin' Chips: How M&A Is Transforming Technology

    December 1, 2015 5:18 PM by Lord Abbett Editorial Staff

    The $330 billion global semiconductor industry is undergoing historic consolidation, but innovation in some quarters has stalled, say analysts.

    In 15 years of covering the technology sector, Lord Abbett Research Analyst Eric Ghernati has never seen anything like the merger and acquisition (M&A) activity of the last several years. (See Chart 1.)

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