A year that most of the markets struggled
Even the most balanced investors have gotten knocked on their heels this year. Typically, spreading one’s bets across several different types of investments (diversifying) has helped deliver steadier returns. When U.S. stocks slide, say, bonds and gold can hopefully help offset the losses. Or maybe stocks abroad will hold up better than their U.S. counterparts. Not so this year.... READ MORE
Why give stock to a donor-advised fund?
What are the benefits of giving appreciated stock to a donor-advised fund if I don’t plan to itemize my deductions this year? Answer: Giving appreciated stock to a donor-advised fund — or directly to a charity — gives you a tax benefit even if you don’t itemize. By doing so, you avoid having to pay taxes on the capital gains that have accumulated through the years. If you... READ MORE
With solid economy, why is market falling?
The nerve-wracking anxiety that’s gripped the U.S. stock market might seem oddly unmoored from economic reality: Economic growth is strong, unemployment ultra-low and consumers exceptionally confident. Indeed, in late October, the government reported that the U.S. economy grew at a healthy 3.5 percent annual pace from July through September. In the previous quarter, annual growth was... READ MORE
Don’t try to time the bull market’s end
The bull market in stocks has lasted almost 10 years. Is it time to take profits and leave the stock market? In recent years, many experts have predicted — incorrectly — that it is time to reinvest somewhere else. And the precipitous drop in mid-October shook some investors’ faith in a continuing bull market. Frankly, I have no idea when this bull market will end, and neither does... READ MORE
How to find ‘advice-only’ financial advisers
If you want money advice you can trust, your best bet is to hire a fee-only financial planner. The trick is finding a planner who’s willing to be hired for a reasonable fee. Fee-only planners don’t accept commissions or kickbacks from companies whose investments their clients buy. Instead, they are paid solely by client fees. Most use an “assets under management” model, where... READ MORE
How long will bull market continue?
The current bull market for U.S. stocks is now the longest of all time. How much longer might it last? Strong corporate earnings growth and a resilient U.S. economy bolstered by a solid job market and consumer confidence set the stage for the market to continue the upward trajectory it’s been on for more than nine years, experts say. Even rising interest rates are not likely to... READ MORE
How to weather a downturn in retirement
The older the current bull market gets, the more stories you’re likely to read about how this is an awful time to retire. Yes, we’re due for a correction that trims 20 percent or more from stock values. That could be a big problem for people taking withdrawals from investment portfolios, since market losses early in retirement increase the chances of running short of money. The... READ MORE
A tax-friendly way to get income for life
Question: I heard that you can use $130,000 in an IRA to buy a deferred-income annuity without having to pay taxes on the money. Have you come across this before? Answer: That sounds like a Qualified Longevity Annuity Contract, or QLAC. In 2018, you can invest up to $130,000 within a traditional IRA (or 25 percent of the IRA balance, whichever is less) in this special kind of... READ MORE
Utility funds for conservative investors
Many readers are concerned about volatility in the stock market, as well as about receiving reliably consistent interest or dividends with their investments. Although the stock market has performed well for more than five years, there is no guarantee that it will continue to show comparable positive returns. Many analysts anticipate that returns in the near term will be much lower —... READ MORE
Mutual funds run by artificial intelligence
A computer can trounce a human chess master and solve complex mathematical calculations in seconds. Can it do a better job investing your money than a flesh-and-blood portfolio manager? Investors willing to test that question can do so with a couple of exchange-traded funds, or ETFs, that leave the investment decisions to a computer’s so-called artificial intelligence, or AI. ETF... READ MORE
