Many investors adopt tax-reducing strategies from year to year without taking a step back to look at the big picture. But how you save or spend money today can have a profound impact on your after-tax wealth over the long term and, ultimately, on your legacy. (more…)
Chances are, your parents have told you to max out your 401(k) plan. That’s good advice, but the hard truth is that your 401(k) plan is highly likely to fall short. To live comfortably in retirement, our research shows, you will almost surely need more.
It’s a truism that what goes up, must come down—but when, and by how much? That matters, especially if you’re talking about the US stock market. (more…)
Is college worth it? It’s not an uncommon question these days, especially with soaring college costs, ballooning student debt levels and higher unemployment. But research shows that pursuing a college degree can result in far more than just a diploma.
The price tag for attending college 18 years from now is projected to be considerably higher than it is today—up to hundreds of thousands of dollars higher for a four-year degree. But using a tax-favored strategy to save for college can help make the costs of future educational expenses less daunting. (more…)
The wealthy will likely see higher 2013 income taxes. One of the newest additions to the tax bill is the 3.8% Medicare surtax. By planning ahead, you may be able to reduce the tax bite—or possibly avoid being bitten altogether. (more…)
Kathleen M. Fisher (pictured) and Tara Thompson Popernik
The common wisdom about retirement planning is to fund tax-deferred vehicles such as 401(k) plans and IRAs to the max—and we agree. But how to put these accounts to best use is more complicated. (more…)
By Kathleen Fisher (pictured) and Tara Thompson Popernik
The government shutdown, now in its second week, has temporarily stopped the flow of government funding for many worthy organizations and may strain the resources of others. Federal grant administration is being delayed. For example, the grant administration staff at the National Institutes of Health has been furloughed; that may stop or slow grants for medical research. Federally funded nutrition programs are facing interruptions, which may increase demand for local social-services charities. Any donations you make now will mean more than ever to charitable organizations. And with federal tax rates up this year, your gift can save you more on your tax bill. (more…)
Recent movements in asset prices suggest that markets have forsaken any possibility of an inflation outbreak in the next decade. We believe that view is far too sanguine. (more…)
By Chris Marx (pictured) and Kent Hargis
As talk of an early Fed “tapering” triggered a sell-off in bonds, safe-haven equities have also suffered. Can low-volatility strategies survive rising rates and an unraveling of the safety trade, in which investors rushed headlong into safe assets no matter the cost? We say, yes—but you’ll need an active approach to navigate the near-term pitfalls. (more…)