Most market forecasters predict “increased volatility, but positive returns” for stocks in 2018. However, the truth is that no one knows when the next major market selloff will occur, how long it will last or how steep it will be.
If the last few weeks have reminded us of anything, it’s that markets can change suddenly and go down quickly.
During the crash of 2007/2008, markets saw gut wrenching declines of more than 50%. Since then the S&P, Dow Jones Industrial Average and other major markets have rallied into one of the longest running bull markets of all time. But this too shall end.
If the next major market decline were to happen tomorrow, how much money could you lose in the next market crash?
To find out, read on…
Photo by Matthieu Da Cruz on Unsplash
Imagine an investment that offers you a predictable, consistent income that rises over time. One that, while not guaranteed, is reliable and has been used by countless others to generate income during retirement.
What is the source of this idyllic income stream? Dividends. More specifically, dividends from publicly traded companies or mutual funds that own them.
To learn more about what a dividend is, click here.
If you ate cereal for breakfast, drank a soft drink at lunch, and drove to the store to pick up a few things on your way home from work, odds you consumed several products that were made by companies that have been distributing cash to shareholders via dividends for many years.
Dividends might not be the sexiest investment you will ever own, but they should play a vital role in your retirement income plan.
Below are 3 big reasons why dividends should be part of your retirement income plan:
It’s March. The time of year when the early tax filers start to see their tax refunds in the mail. Marketers, sales people, car dealers and just about everyone with a product or service to sell knows this and are out to separate you from your money.
The IRS estimates that the average tax filer will receive a refund check of about $3,050. Here in MN, taxpayers can expect an average tax refund of $2,430.
That kind of money won’t change your life, but what you choose to do with it now can make a big difference over time. Rather than spending it on more stuff that you don’t need, consider leveraging your tax refund for even greater benefit in the future by using this easy hack:
Have you ever wondered what the difference is between a will and a living trust? Or how your social security benefits are calculated?
Maybe you have questions regarding what Required Minimum Distributions are, when you need to take them and how much you need to take out.
These are just a few of the most frequently asked questions I get from my clients. Recently, I put together a series of short, easy-to-understand and informational videos to help answer questions like these.
You will find them here
Or perhaps you just need to know a little more About Mike Branch. You will find that here too.
Is there a question you need answered? Let me know and I may post a video based on your feedback.
Photo by Mathieu Turle on Unsplash
Roth IRAs were created 20 years ago to give investors a way to invest for retirement that allowed for tax-free distributions after age 59 ½.
But they came with a catch.
These new IRAs were to be funded with after-tax contributions. Unlike traditional, tax-deductible IRAs and workplace retirement plans like 401(k) accounts, contributions to Roth IRAs are not tax deductible.
Since then, investors have debated whether it’s best to fund a Roth IRA or a traditional, tax-deductible IRA. Strong arguments can be made for both, but most financial professionals agree: whenever possible, the Roth IRA should be part of your retirement income plan.