Stop ‘dollar-cost ravaging’ your portfolio

By: Jason Lambert
Posted on: May 18, 2020

If you aren’t familiar with the 4% rule, it asserts that retirees are unlikely to run out of money as long as they withdraw approximately 4% from their portfolios, adjusted for inflation, each year. It was created in the 1990s, based on stock and bond returns over a 50-year period, from 1926 to 1976. And it made sense for many folks — for a while. But times change, and so does... READ MORE

Where to turn amid bond market chaos?

By: Jeffrey R. Kosnett
Posted on: May 13, 2020

I won’t mince words: “Lower for longer,” my overriding view of fixed-income yields, is trending toward “lowest imaginable.” Expect the imminent return of zero, or near-zero, rates on money market funds, three- and six-month certificates of deposit (CDs) and bank deposits. Bonds with 4% and 5% coupons will be called in bunches by their issuers. Mortgage refis will cut the payouts... READ MORE

When will the U.S. economy recover?

By: Anne Kates Smith
Posted on: May 11, 2020

Mark Zandi is the chief economist of Moody’s Analytics. He spoke with Kiplinger’s Anne Kates Smith in a series of interviews on March 26 and 27. This is an edited transcript of their conversations. Q. What’s your outlook for the economy? How deep a recession do you see? A: It’s going to be a struggle between now and this time next year. We’re in the teeth of the downturn now.... READ MORE

Some simple strategies for CD savers

By: Lisa Gerstner
Posted on: May 08, 2020

Since the Federal Reserve slashed the federal funds rate to near zero in March, yields on certificates of deposit, a federally insured savings account with fixed interest rates and fixed dates of withdrawal, have been tumbling. “Unfortunately for savers, we will return to the ultra-low interest earnings that prevailed for years following the 2008 financial crisis,” said Greg... READ MORE

Avoid some common estate plan mistakes

By: Bud Boland
Posted on: April 14, 2020

A few years ago, I received a phone call from a woman understandably upset that she might not inherit any of her deceased father’s large 401(k) plan, even though he was divorced and she was an only child. Unfortunately, about a year before, her father divorced for the second time and failed to remove his ex-wife as the beneficiary of his 401(k). While the man probably never intended... READ MORE

Should your next car be new or used?

By: David Muhlbaum
Posted on: April 10, 2020

At Kiplinger, we’ve hewed pretty closely to the same car-buying advice over the years: Used cars offer the best value. Not overspending on a depreciating asset fits well with our get-rich-slowly philosophy. As designated car guy, I’ve repeated that mantra plenty of times. But recently a friend challenged me on it.  He was looking for something safe for his kids, with a stick... READ MORE