Finding Yield in a Low-Yield Environment

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Written by Rob Copeland | 13 February 2013

Not that long ago, retirees and others who needed adequate, reliable income knew they could get it by simply investing in bank CDs, Treasury bonds and other high-grade bonds.

But with interest rates at historic lows—in combination with the rating agencies' increasingly conservative approach—it's a different ballgame. Yields on the traditional go-to bonds are too low to provide enough income for retirement and other needs—yet investors still need that income to avoid outliving their nest eggs.

The good news is that there are many lesser-known options for income beyond the usual bond categories. Let's take a look at a few of them. Please note that these aren't specific recommendations for any particular investor. The right investments for you depend on your investment objectives, your time horizon, your risk tolerances and other factors.

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Dodging the Estate-Tax Bullet

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Written by Rob Copeland | 11 January 2013

Many families that spent last year worrying about whether the federal estate tax would affect them can now breathe easy.

The estate-tax threshold had been $5 million, but as Congress debated the deficit and tax legislation, the possibility arose that the threshold would be moved as low as $1 million. That would have drastically increased the number of families subject to the tax.

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Don’t Fixate on the Fiscal Cliff

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Written by Rob Copeland | 12 December 2012

There's been plenty of hype about the so-called Fiscal Cliff—and as a result, some investors are being scared into making bad decisions.

My recommendation is to step back, forget the headlines, and take a breath. One of the worst things an investor can do is to reflexively buy or sell based on hype and hearsay. And when it comes to the Fiscal Cliff, there's plenty of both.

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WEEKLY ECONOMIC UPDATE

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Written by Rob Copeland | 06 January 2012

  WEEKLY QUOTE

“You must do the thing you think you cannot do.”
– Eleanor Roosevelt

WEEKLY TIP

It may be a good idea to make your 2012 IRA contribution at the start of the year, rather than waiting until the tax filing deadline of the following year. That way the contributed assets will have more time to compound.

WEEKLY RIDDLE

They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?

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Health Care Reform - The Next Three Years

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Written by Rob Copeland | 05 September 2011

A look at the changes coming in 2012, 2013 & 2014.

Companies sponsoring group health plans should be aware of the changes coming to the health insurance industry as part of the “second stage” of health care reform. These major and minor adjustments should be kept on your radar.

What’s new for 2012? Insurers that issue group health plans will have to abide by some new requirements.

 

  • Should plan benefits materially change, the plan issuer will have to provide notice in writing at least 6o days beforehand to plan sponsors and participants.
  • Health care plan summaries will have to meet new formatting and content guidelines for clarity, and in the case of fully insured plans, the plan issuer must provide electronic or hard-copy summaries at designated times during the enrollment process.
  • Group health plan participants could actually get rebates in 2012 under certain conditions. In 2011, insurers had to start notifying the Department of Health and Human Services of their medical loss ratios – that is, the percentage of premiums that they spend on clinical services and efforts to improve health care quality as opposed to administrative overhead. The minimum medical loss ratio is 80% for individual and small group insurers and 85% for large group insurers. If a plan issuer doesn’t meet this medical loss ratio test for 2011, it must issue rebates to enrollees beginning on August 1, 2012.1,2

 

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