“You do understand the function of the magician’s assistant, don’t you?” “Yeah. She’s there to distract them as he sets up the trick.” That exchange occurs between characters played by Morgan Freeman and Mark Ruffalo in the 2013 film Now You See Me. If you prefer a musical reference here’s a favorite Pearl Jam lyric [...]
Typically an IRA, 401(k), 403(b) or other employer-sponsored retirement plan distribution can qualify for a tax-free rollover if contributed to another IRA or employer-sponsored retirement plan within 60 days. Taxpayers who don’t meet the time requirement face an income tax bill on the distribution. On Wednesday the IRS unveiled a new procedure allowing taxpayers to [...]
Are advisors worth their fees? Research shows the answer is a resounding “yes,” albeit not for the reasons you might have supposed. Find out why here.
The results of a recent poll by the CFA Institute exhibit interesting findings regarding our bias towards ownership – the so-called Endowment Effect. A full 84% of respondents indicated selling is tougher than buying. The most emotionally taxing decisions are outright sales (43%) followed by short sales (41%). Buying on margin (13%) came in third. [...]
Our caveman ancestors had a simple test for survival – Fight or Flight. In our modern world money is the source of survival. As a result every primitive survival and pleasure-seeking drive is intensely focused on capturing and guarding money. These drives are involuntary and highly emotional emerging more quickly and forcefully than logical analysis. [...]
In a recent general information letter the IRS reiterated several RMD rules and the Required Beginning Date (“RBD”) for taking RMDs: IRAs: The requirement to take RMDs begins on April 1st of the year following the calendar year in which the taxpayer reaches age 70 ½. EXAMPLE: Taxpayer reaches age 70 ½ in 2016. S/he [...]
It’s been a while since we’ve yelled at those darn kids to stay off our lawn so it’s time to complain: What was up with all the gasbags on Friday? Great Britain voted to leave the European Economic Union and with nary a thought appeared article after article proclaiming to know what it means and [...]
“Those who cannot remember the past are condemned to repeat it.” George Santayana (The Life of Reason – 1905) At yesterday’s press conference Fed Chair Janet Yellen admitted what many suspect – the U.S. economy will not soon return to normal. For years The Fed’s projections have been overly optimistic. In-house economists predicted economic activity [...]
Back in the halcyon days of the housing market with a crumbling Fannie Mae and Freddie Mac to contend with a quiet threat to the U.S. financial system appeared in the form of a possible dumping of U.S. Treasury securities held by Russia and China. Both countries with their vast holdings saw the opportunity as [...]
If a tree falls in the woods does it make a sound? If a portfolio is consistent will anyone notice? Many investors claim to believe in asset allocation while maintaining a long-term outlook. Data shows otherwise. The 'buy high - sell low' approach has always been a bane to investors who let their emotions get [...]