IRA distribution rules are extremely shortsighted. They punish taxpayers in the short run and gain the government less in the long term. To see how, let’s examine how Washington compels people to withdraw money from these popular retirement plans.
We’re deep into the year’s first quarter, and it’s time for some predictions to guide investing. Such as: U.S. growth more muted, others weak, stocks up, inflation still low, interest rates up, tech on fire.
Of course, forecasts have a disturbing tendency to look foolish in retrospect, so we go about this exercise with all due humility.
Market turbulence, as the January downturn shows, tempts impatient investors to do foolish things. Trouble is, too many of us are hard-wired to opt for instant gratification and forsake long-term strategies – as the famous marshmallow experiment shows.
The market is off to a shaky start this year, and wobbly overseas economies get much of the blame. Will the downturn continue, and the six-year-old bull market expire? Yes. Too-high valuations and falling investor risk appetite signal that.
Successful investing comes down to discipline. Why aren’t you reaping the returns you read about in the financial press? Your emotions get in the way. That’s what advisors are for – to help you stay the course and make rational decisions.
The strong dollar is much in the news lately. But most Americans, other than tourists beyond our shores, don't focus on what that means to them. For U.S. investors, the upshot is not great. In fact, for most, currency fluctuations worldwide (and not just that of the dollar) are an invisible force that they don’t reckon with until it’s too late.
Eugene F. Fama is among the brightest lights in the economic firmament. Now, as a long and unbroken bull market dissolves into volatility, it’s a good time to reflect upon the wisdom of this University of Chicago professor and Nobel laureate.
A record-breaking Dow Jones Industrial Average always makes all the headlines and gets everyone excited, but what does it means for you? Nothing but a reminder to focus on your investment portfolio.
A conventional piece of investing advice is to put most of your money into broad market index funds, like the one tracking the Standard & Poor’s 500. But few people invest solely in the S&P 500 or solely in U.S. stocks.
Market predictions are just guesses. To prevent your entire portfolio from sinking in one market swoon, diversify.