After every election about half of my clients want to sell everything and move to cash. The problem with elections and markets is that they rarely move together.
Guessing which way an election will fall and how markets will respond is difficult at best.
Can Election Results Predict the Market?
IRAs are the cornerstone of most people’s long-term retirement plans. In the best of circumstances, they offer tax-deferred growth and either tax-free distributions at retirement or a major tax-deduction when contributions are made.
Savvy investors fund their IRAs to the maximum amount allowed by the IRS. However, if you are not careful, it’s actually possible to OVER fund your IRA.
Known as an “excess contribution”, adding too much to your IRA could result in significant penalties and quite a mess to untangle.
Below are 5 ways you can end up with an excess IRA contribution.
Whether through inertia or trepidation, investors who put off important investment decisions might consider the admonition offered by motivational speaker Brian Tracy, “Almost any decision is better than no decision at all.”¹
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Famed investor Warren Buffet, a decidedly non-techy kind of guy, has publicly stated that cyberattacks may represent a greater threat to humanity than nuclear weapons.
Microsoft estimates that the worldwide cost of cybercrimes could be as high as $500 billion. Others predict that this number could climb into the trillions of dollars in the next few years.
Cybersecurity and the protection of your financial accounts and other digital assets is a growing problem in today’s tech-dependent world.
Watch this 1-minute video to see how many of these basic strategies you are taking to be cybersafe.
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For the past 40 years or more you have paid into the Social Security system with the promise that someday when you retire, you will receive a guaranteed monthly income for the rest of your life. Along the way, your employer has kicked in a matching contribution equal to 100% of your contribution.
At the end of your working life there should be a giant pile of cash with your name on it. And there is (figuratively speaking anyway). But it comes with a giant string attached.
In this case, the catch is that up to 85% of your monthly benefit is considered taxable income once it’s paid out to you. What’s more, depending on the state you live in, you may owe state income tax on those benefits as well. (Bad news fellow Minnesotans. We live in one of those states).
The following post will explain how much of your benefit is taxable and what, if anything, you can do about it.