One of the macro-level changes in the investment landscape has been the large-scale shift by investors into indexes and ETFs (and away from stocks and mutual funds) – a shift that the author of today’s article sees as being based on misplaced beliefs, and one that he warns will cost those investors – especially younger investors – in the long run through “meek unassuming gains.” He instead advocates using a three-pronged portfolio (Core, Explore and Super Explore) that offers “diversification, index-beating growth, and fee minimization.” To read more, CLICK HERE.
For diligent retirement savers, the author of today’s article doesn’t see investing in large-cap stocks – with their maturity and predictable cash flows – as being a bad plan. However, for the large segment of Americans who are either behind on saving for retirement (or have no retirement savings at all), he points to small-cap stocks as being “the best way to turbocharge their savings.” But doesn’t the greater risk associated with small-cap stocks outweigh the potential for slightly better returns? The author shows how this is not necessarily the case. To read more, CLICK HERE.
Of all the stocks currently listed on the U.S. market, is a simple basket of just five of them all that is needed for a lucrative retirement? Yes… or at least that is the case the author of today’s article makes. But doesn’t holding just five stocks mean that a portfolio would not be sufficiently diversified? To the contrary, the author argues that “you can create a well-diversified portfolio with just five stocks. In fact, you can create a better diversified portfolio than most of your neighbors have with just those five names.” How – and what are the five investments in question? CLICK HERE to find out.
While many financial firms recommend that U.S. investors have some exposure to foreign stocks, that entails exposure to the currencies of the countries in question, and the author of today’s article notes “that means in addition to the stock’s performance, your total return will include the performance of the foreign currency translated into U.S. dollars.” With a strong dollar, this has had the effect of hurting the returns of U.S. investors with foreign stock exposure. As such, the author recommends considering exchange-traded funds that hedge currency exposure, leaving investors with only the stock return. To read more, CLICK HERE.
From real estate to hedge funds to precious metals and more, at least half a million retirement accounts hold unconventional assets – and today’s article focuses on a new report from the Government Accountability Office which warns that “retirement savers choosing these unconventional assets in self-directed individual retirement accounts and solo 401(k)s face big risks….” How might investing in unconventional assets put the retirement security of individual investors at risk? CLICK HERE to find out what the GAO report has to say.
For investors in their 50s looking to both grow their retirement nest eggs and build a steady stream of passive income, today’s article highlights one stock which, “with its powerful wealth-building combination of increasing dividend payouts and share-price appreciation”, may be one of the best picks for achieving both of these goals. To find out what this stock is – as well as to read about the factors fueling its current strong results, its “multiple pathways for continued growth” going forward, and why its profits are downright meaty – CLICK HERE.
Today’s article notes that, with the Fed finally moving to raise interest rates, “retirees will soon be able to park their money somewhere safer than dividend-paying stocks.” However, the author does not advocate abandoning these stocks altogether, with there still being “under-the-radar dividend payers that offer considerable value for investors willing to take a little more risk.” Three such stocks are highlighted, including the biggest player in the wood pellet markets and a small Nebraska company that help hospitals run more efficiently. To read more about these three stocks, CLICK HERE.
Think you’re a 401(k) pro? Are you sure? Noting that, when it comes to some 401(k) decisions, you only get one chance to get it right, the author of today’s article lays out seven 401(k) mistakes that even well-informed investors are capable of making. Do you know all the ins and outs of net unrealized appreciation (NUA), brokerage windows and in-service distributions? Do you know when it might be a mistake to not roll over a 401(k) – and when it might be a mistake to roll over a 401(k)? To read more about these seven mistakes that the author warns “can have a dramatic impact on your retirement”, CLICK HERE.
Many investors spend a great deal of time deciding what to buy and when to buy it. Today’s article argues that the other side of the equation – knowing when to sell a stock – is just as important, noting that “some successful investors tend to know when they will sell a stock even before they place their buy orders.” As such, the author outlines several strategies that can be employed in the aim of developing a “selling discipline”, including the strategy advocated by the teacher of Warren “Our favorite holding period is forever” Buffett. To read more about these strategies – including how to determine when it’s time to sell winning stocks – CLICK HERE.
New rules are coming into effect this month that the author of today’s article states “will fundamentally change the way money market funds operate.” In light of these new rules – which are aimed at preventing runs on money market funds as happened in the 2008 financial crisis – the author looks at the case for investors moving their cash into internet savings accounts, concluding that these options “may offer the best combination of liquidity, safety and yield.” To read about why this may be the case, what some of the downsides of internet savings accounts are, and to learn more about the new money market fund rules taking effect, CLICK HERE.