New annuity type can minimize your RMDs
Most retirees have two big concerns: outliving their savings and paying taxes on their withdrawals.Now there’s a way to deal with both of those issues. A new type of annuity, called a qualified longevity annuity contract, or QLAC, lets retirees lock in income in the future and avoid taking taxable required minimum distributions (RMDs) on as much as $125,000 of their retirement... READ MORE
Congress amends Social Security benefits
In addition to funding the federal government through the 2017 fiscal year, the recent Bipartisan Budget Act introduces important changes to Medicare and Social Security.On the beneficial side, it reduces the proposed increase in premiums of Medicare Part B from 52 percent to approximately 15 percent for those participants not covered by the “hold harmless” provision. [See... READ MORE
Take a new look at your smartphone plan
In recent years, wireless carriers have vied for smartphone market share by offering flexibility: no-contract, lower-price service plans for customers willing to pay full price for a phone.Now, with nearly every cell phone user a smartphone user, providers are applying that model to all their plans, eliminating the hefty subsidies that longtime customers relied on to knock hundreds of... READ MORE
Ways to afford long-term care coverage
No matter how carefully you plan for retirement, if you don’t have long-term care insurance, a catastrophic illness could wipe out your savings.The average private room in a nursing home costs $250 per day — or $91,250 per year — according to Genworth’s 2015 Cost of Care study. Costs are typically considerably higher in this metro area.The median cost of assisted... READ MORE
Should investors flock to European stocks?
Europe has been a land of disappointment for years for investors. But now they can’t get enough of it.Investors are so hot for the continent that made “debt crisis” and “austerity” everyday terms that they’ve plowed more than $30 billion this year into mutual funds and exchange-traded funds that focus on European stocks — a relatively niche category ... READ MORE
Merck: a great dividend stock for retirees
Dividends are the lifeblood of Big Pharma stocks. The payouts ensure a steady income stream even when a company’s shares stagnate.But a healthy dividend isn’t the only reason to consider the shares of Merck & Co. (symbol MRK). Not only does the drug maker’s stock deliver a 3.3 percent yield, it also has potential for gains.With more than $39 billion in annual sales,... READ MORE
Contrarian advice on emerging markets
If you think investors in U.S. stocks have had it rough, consider the hapless folks who followed Wall Street’s advice to buy emerging-market stocks.The MSCI Emerging Markets index has lost 25 percent over the past year, while the most widely held U.S. fund, the Vanguard Total Stock Market index, is down less than 1 percent.After the financial crisis, plowing money into emerging... READ MORE
Don’t pay to recover unclaimed property
You may be contacted by a company informing you that you have unclaimed property held by state authorities. The company may tell you the property is available to you for a fee, such as 10 percent or more of the value.But there is no reason to pay a fee to any entity without searching on your own first, which you can do easily and at no cost.According to the National Association... READ MORE
Consider some less-volatile mutual funds
It’s one of the golden rules of investing: Make a plan and stick with it.But when share prices head south (the risk of which increases as the bull market continues to age), many investors panic and chuck their stocks at precisely the wrong time, when prices are down.One excellent defense against such boneheaded behavior: Cushion your portfolio against shocks with funds that keep you... READ MORE
Should you sell your life insurance policy?
A growing number of seniors are looking to sell their life insurance policies to investors. But there is significant risk for older people getting involved in these “life settlement” transactions — whether they are selling their policy or investing in those of others.In a life settlement, a policyholder sells his policy in exchange for a lump-sum cash payment. The buyer... READ MORE