Archive for 'January 2016'

    IRA Season: The Advantages of Roth IRAs

    January 28, 2016 2:30 PM by Brian Dobbis

    You can fund Roth IRAs at virtually any age, even with the intention of passing them on to heirs. Beneficiaries inherit the potential to withdraw the funds tax-free.


    (Fourth in a six-part series)

    Individuals who are approaching or already in retirement shouldn’t be discouraged from establishing retirement savings accounts later in life.

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    The Fed Faces a Changed World

    January 27, 2016 4:48 PM by Zane Brown

    The U.S. Federal Reserve’s January policy statement acknowledged global market turmoil and implied a less aggressive pace of rate hikes.

    What a difference a month makes. The world in which the U.S. Federal Reserve (Fed) conducted its two-day policy meeting on January 27 is quite a different place than the one that characterized its previous meeting in mid-December. 

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    IRA Season: How Federal Tax Credits Can Help You Save for Retirement

    January 21, 2016 4:51 PM by Brian Dobbis

    While the middle class continues to get squeezed, the saver's credit still encourages moderate-income workers to contribute to employer retirement plans.


    (Third in a six-part series.)

    When it comes to retirement, anything that enhances your savings is gravy, especially when Uncle Sam is dishing it out.

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    IRA Season: Open to Almost Anyone

    January 14, 2016 2:20 PM by Brian Dobbis

    The three months leading up to the April 15 federal tax-filing deadline are considered peak IRA season. You still can make contributions for the year just ended, as well as for the new year.


    (Second in a six-part series)

    Old age is no place for the timid, to paraphrase a long-ago quote by the legendary actress Bette Davis. And that was before Individual Retirement Accounts (IRAs) caught on. Forty-one years after IRAs were signed into law, investors have sunk more than $7 trillion into such retirement vehicles. And they show no signs of slowing down. Total IRA assets are expected to reach $11.7 trillion by 2020, according to new research from global analytics firm Cerulli Associates. A significant portion of this growth is being fueled by rollovers from 401(k) and other workplace retirement plans.

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    U.S. Stocks: A Bad Time for Market Timing

    January 13, 2016 10:32 AM by Joseph M. Graham, CFA

    The impulse to sell during market pullbacks has often resulted in lower long-term returns.

    The year got off to a record start for the U.S. stock market (as represented by the S&P 500® Index); unfortunately, the record (as of January 7) was for the worst performance by the index in the first four trading days of the year. 

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    IRA Season: Step up Your Retirement Planning in 2016

    January 11, 2016 10:06 AM by Brian Dobbis

    The long and winding road to retirement may be full of potholes, but now is the time to look at when and how to retire, as well as the key retirement deadlines and rule changes for 2016.


    (First of a six-part series)

    With the oldest baby boomers set to turn 70 in 2016, let’s flash back more than four decades to the birth of retirement savings accounts. That’s when President Gerald Ford signed into law the Employee Retirement Income Security Act [ERISA] of 1974, giving American workers unprecedented flexibility to accumulate assets for their golden years. That pension reform bill created the Individual Retirement Account, or IRA—a powerful savings tool with the potential for tax-deferred growth.

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    A Volatile Start to 2016

    January 8, 2016 4:00 PM by Timothy Paulson

    Here are some insights on the January market turmoil—and its implications for investment managers.

    As we pointed out in our year-end U.S. fixed-income market preview, 2016 held the prospect of continued volatility in financial markets, with flare-ups of risk and other uncertainty a likely feature of the post-rate hike world following the U.S. Federal Reserve’s policy tightening on December 16.  

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    China: Doing What They Said They Would

    January 8, 2016 2:43 PM by Harold E. Sharon

    Developing its own independent monetary policy means China no longer has to hitch its currency to the strong U.S. dollar. And that should be a positive, not a negative.

    Once again, China's currency and its stock market are dominating the financial news as we start the new year. Will this, as it did back in August, set the tone for the next six months? Or is this just the ongoing story of China following through with its announced plans to allow more currency flexibility and mobility, thus allowing it to finally have its own monetary policy rather than being beholden to the U.S. Federal Reserve’s interest rate policies? 

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    U.S. Stocks: Keep Calm and Don't Sweat the Yuan

    January 7, 2016 5:40 PM by Zane Brown

    Investors may be overreacting to economic and currency developments in China. Sound familiar?

    The new year certainly has been less than happy thus far for U.S. equity markets, but it appears that just as investors did in August 2015, they may have overreacted to recent developments in China.

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