“We think this is a policy shift of enormous magnitude. If Reagan was a Richter 8, this is a Richter 9.” This is how one financial planner cited in today’s article sizes up the tax changes that will come under President Trump and the GOP-controlled Congress. While the general advice is to defer income and accelerate deductions, what specific moves relating to the alternative minimum tax, charitable contributions, estate taxes and the net investment income tax are financial advisors recommending their clients make now in anticipation of impending tax reform? CLICK HERE to find out.
“To do something extraordinary (like retiring at age 52), it takes extraordinary thinking,” states the author of today’s article, which seeks to identify the “money mindset” that can help one beat the odds and achieve the goal of retiring early. Using the example of her neighbor – who retired at 52 – as a guide, the author outlines a number of thought processes that can assist in making the dream of early retirement a reality. To see what these thought processes are – as well as for practical tips the author provides for each – CLICK HERE.
Today’s article looks at how health savings accounts (HSAs) – already seeing significant growth in popularity – may flourish even more under president-elect Trump and Republican lawmakers. Specifically, the article looks at the proposals Trump and Congressional Republicans have for HSAs and how – if enacted – “people who use these tax-advantaged plans to pay for health costs as well as investors who treat HSAs as another retirement option could benefit.” To see what Trump and the GOP are proposing in regards to HSAs – including increasing contribution limits and making it easier to pass them onto heirs – CLICK HERE.
When it comes to the various financial needs that people approaching retirement seek to address, the author of today’s article places them in four groups: “liquidity for emergencies, income to last a lifetime, growth for inflation protection and estate planning for our legacies.” The problem with how most people go about addressing these needs, according to the author? They jump from one investment vehicle to the next in search of a silver bullet solution to their assorted retirement woes when no such one-stop solution exists. The author advocates instead for a “purpose-based” approach to retirement portfolios. To find out what this approach entails, CLICK HERE.
“You get a steady-eddy dividend payer backed by strong emerging market demographic trends. If that isn’t a solid retirement stock and a great sin stock, then I don’t know what is,” argues the author of today’s article in making his case for what he sees as the single best sin stock for a retirement portfolio. To find out what this sin stock – “one of the highest-yielding stocks outside of the telecom or utilities sectors” – is, why it may be the best sin stock for retirement, and why the author says that its dividend might seem “a little strange” to American investors, CLICK HERE.
When it comes to retirement planning, today’s article provides a case study in what not to do. In fact, it provides seven of them, as relayed by the financial planners who have seen people make these big retirement planning mistakes first-hand. From being too optimistic (or, conversely, too pessimistic) about one’s financial situation, to underestimating the impact taxes will have on retirement income, to not accounting for long-term care – and more – CLICK HERE to read about these “top retirement planning mistakes” and how to avoid them.
When it comes to identifying attractive stocks, today’s article recommends following broker rating upgrades: “Brokers have in depth idea about what’s happening in a particular company, as they directly communicate with the top management. Also, they exhaustively go through the company’s publicly available documents and attend conference calls.” The authors screened for stocks that have seen broker rating upgrades in the last four weeks (and which met additional criteria such as trading above $15 and having large trading volumes). To see five of the stocks this screen produced and their respective upward revisions in broker ratings, CLICK HERE.
Today’s article notes that while, “as a candidate, Donald Trump barely mentioned America’s retirement crisis…As president, he will have enormous power over the issue, bolstered by Republican control of the U.S. Senate and House of Representatives.” So in what ways might the impending Trump presidency affect the retirements of Americans? The author looks at the impact his administration may have on Social Security, financial advice, automatic IRAs and 401(k)s. To read more – including how Trump’s proposed tax cuts might impact Social Security and what the fate of the fiduciary rule set forth by President Obama’s Department of Labor may be – CLICK HERE.
When it comes to two insurance products that might appear attractive to retirees in this low interest rate environment, today’s article cautions that prospective buyers should look carefully before leaping into these complicated investments. The two products at issue? Indexed annuities and indexed universal life insurance. Here’s what one advisor cited in the article has to say: “With indexed annuities and indexed universal life insurance, the marketing pitch is always that you get all of the upside of equities and have guarantees…It’s really misleading.” To read more about these two products – including who they can be good fits for, their potential limitations and where things get complicated – CLICK HERE.
In today’s article the author lays out “an easy way to use the S&P 500 Dividend Aristocrats – companies that have hiked their dividends for 25 years straight or more – to build a durable income stream you can retire on.” Specifically, he presents a five-stock Dividend Aristocrat portfolio with the potential to generate $112k of retirement income from a $500k portfolio. To read more about this portfolio – including which five Aristocrats it is comprised of and why, income growth projections and the “secret weapon” that can be used to counter inflation – CLICK HERE.