Couple of problems with being human. Well, OK, more than a couple but we'll limit to two for the sake of discussion. Anyway... We assign way way way too much value to the most immediate events. It's called recency bias. The S&P 500 went from a low of 666 in March 2009 to over 2,900 [...]
A bit more than ten years ago Lehman Brothers which at the time was the 4th largest investment bank in the U.S. filed for bankruptcy protection. The event has become the symbolic start of what’s been called the Global Financial Crisis (“GFC”). Today we continue to see its effects on both the global economy and [...]
A worrisome trend continues. Recent data from the Centers for Disease Control and Prevention confirms that last year the average life expectancy for Americans declined by 0.1 years to 78.6 years. Since 2014 the U.S. has lost 0.3 years in life expectancy. For comparison life expectancy is 84.1 years in Japan and 83.7 years in [...]
You’ve heard it before. Lots of content for the sake of content. Most stuff garbage and a waste of time. We like to pass along the exceptions. We strongly recommend the 9/30/18 shareholder letter from Tweedy, Browne. As always it’s an honest, plain language discussion of markets, economies, results and how value investing fits into [...]
Generally assets held in a retirement account such as a 401(k) or IRA are exempt from the claims of creditors. The tests are: the amount in the account must be retirement funds the account the funds are held in must be one that’s exempt from taxation under certain sections of the Internal Revenue Code A [...]
Last year Oregon became the first state to implement a mandatory retirement plan for companies not offering a retirement plan to their employees. Continuing to blaze the trail the state is now expanding the program to individuals so that the self-employed and/or so-called gig economy workers may benefit. Plan participants invest through IRA-like accounts that are [...]
Yesterday the IRS announced inflation-adjusted limits for 401(k) contributions, the SS wage base, etc. Highlights and the full technical bulletin may be found here and here.
When Uncle Sam’s income (i.e. tax revenue) is less than his spending he runs a budget deficit. The Treasury Department sells Bills, Notes and Bonds (i.e. “Treasuries”) to cover the shortfall. Who are the buyers? Who enables the federal credit card? Historically the gap was filled from overseas. Individuals would buy Treasuries due to [...]
So here we are again. Loathe to comment for fear of legitimizing a non-event yet silence brings accusations of laxity. Woe is us! By now we’re all aware of a two-day slide that knocked 1,300 points off the Dow. Big Media loves it. Article after article. Talking head after talking head. Lots of folks rewriting [...]
According to the Social Security Administration next year’s benefits will increase by 2.8% as the average recipient will see his/her benefit increase by $39/mo. Similarly the maximum Social Security tax will increase by $279 as the “wage base” or the amount of earnings subject to the 6.2% tax will jump from $128,400 in 2018 to [...]