IN THE NEWS
Why You Need a Retirement Policy Statement
Morningstar | Christine Benz | July 3, 2018
Creating either an investment and/or retirement policy statement is an important first step in articulating your strategy and creating a long-term plan. These can help to keep you on track with your financial goals as it is easy to reference solid documentation, whether it be asset allocation limits or basic guidelines of your retirement outlook. Benz explains that the two types of policy statements can work hand in hand, "In the investment policy statement, you are getting into what's my asset allocation that I'd like to maintain; what are the investment criteria that I'm looking for when I pick investments; how do I decide when it's time to sell...The retirement policy statement...is a little bit more holistic in that it considers not just the investment portfolio but the nonportfolio assets as well."
Here at GCM, creating these policies is an imperative first step in our process.
DO YOU HAVE ENOUGH TO RETIRE?
Morningstar | Christine Benz | June 25, 2018
"But what if you're getting close to retirement? Savings benchmarks can be a useful starting point to gauge retirement readiness for you...and you can refine them further by factoring in your marital status, salary, expected retirement date, anticipated/desired standard of living in retirement, and non-portfolio sources of income."
you might want to rethink this 'Dead' Retirement plan if you have a small business
Forbes | Robert Pagliarini | May 2, 2018
This article is for small business owners who want to pay less income tax and is ideal for those who have few employees, excess profits, and a frustration by the low contribution limits to traditional IRAs or 401(k) plans. If this describes you, you should get familiar with how a defined benefit pension plan might be the perfect solution to cut your taxes and save for retirement.
Don't Wait For Social Security's Crisis — It's Here
Investor's Business Daily | Editorials | June 8, 2018
"We are nearing a crucial time where our political leaders have to implement plans to make social security solvent. Unfortunately unless we see a real pick-up in wages, only other ways are to raise taxes, cut benefits or increase the retirement age. The situation can no longer be ignored and passed to future legislators."
Know the Difference Between a Broker and a Registered Investment Adviser
Kiplinger | Pete Woodring | September 22, 2015
A broker, or “Registered Representative” as they are sometimes called, is required only to recommend investments that are “suitable” for their clients. This means that a broker can legally put his or her own interest above yours when recommending financial products for your specific situation. RIAs are ethically and legally responsible for acting in your best interests at all times, thanks to the Investment Advisers Act of 1940. They serve as fiduciaries, and one definition of a fiduciary is “a person who occupies a special trust and confidence when working with clients because he/she is legally required to act ethically and with undivided loyalty to the client.”
Few people know about this key college savings plan
CNBC | Jessica Dickler | May 29, 2018
Not only can you get a tax deduction or credit for contributions (more than 30 states and D.C. offer a direct state tax deduction for your contributions), earnings grow on a tax-advantaged basis and, when you withdraw the money, it is tax-free if the funds are used for qualified education expenses, such as tuition, fees, books and room and board. The new tax law even expanded the use of plans to include private-school tuition from elementary through high school. Families now have the option to use up to $10,000 in annual tax-free 529 plan withdrawals to cover those early expenses.
Open up more than the books with your financial advisor
LA Times | NERDWALLET | May 11, 2018
There's a reason it's called personal finance. Almost everything about your life can influence your financial decisions, so get ready to talk about more than dollars and cents... Be prepared to think through such questions as: What and who is most important to you? What do you want to do with the rest of your life? What keeps you up at night?
Shopping Around For Your Mortgage Can Save You Big -- Here's How To Do It
Forbes | Aly J. Yale | May 2, 2018
In general consumers search too little, get confused while evaluating complex alternatives and are slow to switch from past choices, even if it costs them.
Knowledge Gap on Social Security May Lead to False Sense of Security
NAPA | Ted Godbout | May 1, 2018
Not surprisingly, those who work with a financial advisor appear to be much better prepared to maximize their benefits. Those working with an advisor report receiving over 20% more in Social Security benefits than those who do not.
what should you do with your 401(k) plan when you leave your job?
Fox Business | Linda Bell | April 18, 2018
Your new employer’s plan may be limited in investment choices or it may be expensive...Rolling your funds into an individual retirement account (IRA) is the best choice for a lot of employees.
New York Takes Aim at Active Share Disclosures
NAPA | Ted Godbout | April 9, 2018
The report emphasizes that investors should not assume that a high fee, or expense ratio, for a mutual fund means that the fund will have a high active share. It notes that funds with average expense ratios of 0.55% to 1.75% were found to have a broad range of average active share, ranging from 60% to 100%, suggesting that there may be a limited relationship between fees and active share. The report further contends that many mutual fund firms gave unequal access to information about actively managed funds to institutional and professional investors, while excluding retail investors.
America’s new great migration in search of lower property taxes
MarketWatch | Andrea Riquier | April 9, 2018
Taxes aren’t the most important determinant of where home buyers will locate, jobs are. But taxes are “the icing on the cake” in areas that are seeing strong population inflows anyway.
New York State Enters Private Retirement Savings Push
NAPA | Ted Godbout | April 3, 2018
If all goes according to plan, New Yorkers without access to an employer-sponsored retirement plan could begin enrolling in the program in about two years, although the legislation does allow for an additional one-year delay if necessary.
10 Myths About IRA Contributions
Morningstar | Christine Benz | March 26, 2018
With Roth and traditional IRA contributions come a bewildering array of rules about tax treatment, income limits, and age limits. For many, analysis paralysis is no doubt a part of IRA procrastination.
Fifty-Three Percent of Women Plan to Retire After Age 65
Plan Adviser | Lee Barney | March 5, 2018
A sobering read -- 48% of women fear that they will be unable to meet the basic financial needs of their family in retirement. Only 12% of women are very confident that they will be able to retire with a comfortable lifestyle. 33% percent of women say that Social Security will be their primary source of income in retirement. 21% of women have less than $10,000 in retirement savings.
When Adult Children Wreck Parents’ Retirement
Financial Advisor | Greg Sullivan | March 1, 2018
Many parents try to soften the blow for their children. They don’t want to think of their kids sitting in a tiny apartment eating instant Ramen (even though that’s what they did), so they pony up until the kids can get on their feet... Sometimes, parents are wedded to the idea that they are so important in their children’s lives that the kids can’t get along without them. They want to stay relevant. But there are better ways to be relevant in your children’s lives than to encourage them to depend on you.
Why The Best ROI On College May Be For Those Who Would Have Been Successful Anyway
Nerd’s Eye View | February 28, 2018
The key point is to acknowledge that the ROI of a college investment varies greatly based on the characteristics of a student – primarily by amplifying the positive results for good students, while mostly amplifying the downside risk for bad students – and many other factors that are often overlooked. College may be a great investment for some, but it is not for all!
Why investors can't gauge their own risk tolerance
CNBC | Ted Jenkin | February 21, 2018
The two main emotional drivers in the stock market are greed and fear...Fear is a much stronger emotion than greed...Fear is the real driver that can tell you what your real risk tolerance is because, when the roller coaster hits, its first large drop will really reveal whether or not you are ready for the ride.