How to react to the stock market selloff
There’s nothing like a market rout to remind investors of the importance of following the tenets of sound investing. The declines during January and February were doozies, making the start of 2016 a baptism by fire. In the first four trading days of the year, the Dow Jones industrial average racked up a loss of nearly 1,000 points, or more than 5 percent. Selling continued to... READ MORE
All about required minimum distributions
It’s a watershed year for the baby boom generation. In 2016, the first of the boomers — those born in the first half of 1946 — will reach age 70 1/2. Their present from Uncle Sam is a demand that they begin withdrawing funds from their traditional individual retirement accounts (IRAs) and employer-sponsored retirement plans, such as 401(k)s. If you’re among... READ MORE
Workers seek phased retirement options
Roberton Williams’ plan was to retire on his government pension and take a part-time job to make up the difference in salary. It didn’t quite work out that way.Williams, 68, did retire, but then started another full-time job with the Tax Policy Center, a Washington think tank. “The plan was to work full time just until I got my feet wet,” Williams said.... READ MORE
Beware hidden dangers in bond funds
Regulators and money managers are raising alarms about a growing threat to bond funds and their investors. The concerns revolve around “liquidity” — the ability to buy or sell a security at a decent price within a reasonable period of time.As a result of new regulations enacted since the financial crisis, broker-dealers — the bond market’s middlemen —... READ MORE
The best bonds for your portfolio in 2016
As the Federal Reserve finally starts to gently raise interest rates, and fear and loathing reach a fever pitch in bond-land, I am reminded of a column that appeared in a well-known business magazine in December 2013, just before Janet Yellen’s confirmation as Fed chairman. It began, “Bonds are going to get killed. Are you ready?”My reaction at the time: Poppycock. Now,... READ MORE
A guide to organizing your estate records
As I’ve emphasized before, one of the best legacies you can leave to your loved ones is a well-planned estate. Part of that is making sure your important estate documents are organized for easy access.This is the topic of a useful book, Get it Together by Melanie Cullen and Shae Irving (published by Nolo), which advises on creating a comprehensive plan with your attorney and... READ MORE
Investing in startups will soon be easier
For years, artists, charities and entrepreneurs have used the power of the Internet to generate money for projects. It’s called “crowdfunding,” and lets members of the public financially support those who are engaged in potentially worthwhile or profitable endeavors. However, the money sent is not technically invested: donors get no stock and don’t share in any... READ MORE
Four great ways to give investments to kids
When Peggy Mangot began giving her nieces and nephews financial gifts more than a decade ago, the process was frustrating. Buying shares of individual stocks was costly and time-consuming; most mutual funds were out of reach because of high minimum-investment requirements; and purchasing a simple U.S. savings bond proved so difficult that Mangot gave up.Sending checks to the young people... READ MORE
How high earners can contribute to a Roth IRA
Want to put money into a Roth IRA, but can’t because your income exceeds the threshold for contributions? There’s a “backdoor” strategy you can employ.That’s how Paul Missel is building a tax-free pot of retirement money. Missel, 59, works for a pharmaceutical company in Fort Worth, Tex., and his income is too high to make direct contributions to a Roth.... READ MORE
Target funds that work longer than you do
Target-date funds — mutual funds designed for people planning to retire in a particular year — are more popular than ever these days, in part because they have become standard features of workplace retirement plans.But the best thing about target-date funds is that the managers take care of everything. They craft a portfolio of stocks, bonds and other assets that are appropriate ... READ MORE
