What Does Low Inflation Mean for Bond Owners?
If you’re like many people, you may pay a lot of attention to the day-to-day price movements of your investments. But to create and maintain an effective investment strategy, you also need to look at the “big picture” — specifically, the economic and market forces that can affect your investments’ performance. And one of those factors is inflation.
Own Bonds? Be Prepared for Rate Hikes
If you own bonds, keep this in mind: Bond prices typically drop when interest rates rise. If rates were to escalate, then, and you own a sizable amount of bonds, particularly long-term bonds, the value of your portfolio could show a noticeable decline. Should you be worried?
Time to Take Retirement Plan Distributions?
You may not have the pictures, suntan or souvenirs to show for it, but if you’re at least 70-1/2, you’ve just finished a “vacation.” And that means you’ll have to do some work — on determining how much to take out of your retirement plans this year.
Financial Gifts for Your Valentine
Valentine’s Day is fast approaching, so you’d better get going with the flowers and chocolates for your sweetie. But this year, why not go beyond the traditional gifts and give a present that can make a difference in your loved one’s life for years to come? Specifically, why not give a financial gift?
Sandwich generation needs to avoid financial squeeze
Are you a member of the “Sandwich Generation”? This designation — which applies to people caring for their aging parents while supporting their own children — may be applicable to you if you’re either a younger Baby Boomer, born in the late 1950s or early 1960s, or an older member of “Generation X,” born in the mid-1960s. But any way you slice it, being in the “Sandwich” group is probably going to present you with some challenges, particularly of the financial kind — so you’ll need to make the right moves.
Don’t be an ‘opposite day’ investor
On Jan. 25, some of us celebrate Opposite Day. Its origins are murky and even its exact date is in some dispute, but Opposite Day has proved to be a source of fun for many people, especially children, who choose to eat breakfast at suppertime and otherwise do things in reverse. However, you may find that acting in an “oppositional” manner is not so harmless at other times in your life — such as when you’re investing.
New year means new opportunities for Roth IRA conversion
If you already have a Roth IRA, you’re aware of its biggest benefit: Your earnings grow tax free, provided you meet certain conditions. If you don’t have a Roth IRA, you may want to consider one — and it may be easier for you to do just that in 2010.
Watch for ‘re-lit’ 401(k) match
As the economy recovers, you may find some new opportunities to expand your investment horizons — and one such possibility may be your company’s 401(k) matching contribution.
Start planning now to cope with estate taxes
Throughout your life, you strive to provide financial security to your family. And your efforts can extend beyond your lifetime — if you work to control estate taxes.
Put unused vacation days to work – in your 401(k)
Now that the year is almost over, you may want to explore some last-minute steps you can take to potentially boost your financial fortunes and improve your tax returns for 2010. And one good place to look is your 401(k).
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