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Good News: Rolling College Savings Balances Into IRAs
(Main Content/blog)
... to a family member's 529 plan. Any other withdrawals of the money resulted in an income tax and a 10% federal tax on earnings. Now, 529-account owners or beneficiaries can roll $35,000 into a Roth IRA ...
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The Big Question: When Can I Retire?
(Main Content/blog)
... The real problem with retirement-savings rules of thumb is that they’re too general. There are some calculations that are helpful in getting started. Calculating your present income minus ...
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How to Fix Your Retirement Savings
(Main Content/blog)
... income during your working years, and more if you're catching up. The important thing is to start putting money aside, even if it's a modest amount at first. Let's say you're able to contribute just ...
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Here’s Why I’m a “No” on Annuities
(Main Content/blog)
... promise of predictable income streams, look like a safe haven. In addition, those rising interest rates have also translated into higher annuity payouts. Early in my career I really liked annuities. ...
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Improving Bond Yields and the Case for Rebalancing
(Main Content/blog)
... And with interest rates low for much of last year, bonds provided very little if anything in the way of yield. Things look a lot different this year. Yields on all types of fixed income are way up, thanks ...
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Five Predictions for 2023
(Main Content/blog)
... homebuying years. 4. Investors will flock to bonds. Demand for fixed income should increase in 2023 as investors realize that rising interest rates have resulted in the most attractive bond yields in ...
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Will Biden Double the Capital Gains Rate?
(Main Content/blog)
... has garnered lots of headlines and caused a fair amount of angst among those who might be affected. But I suspect there is not very much to fear. Biden reportedly wants to raise the top individual income ...
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How to Invest for Inflation
(Main Content/blog)
... can decimate the value of fixed-rate bonds because it erodes the buying power of the income stream the bonds provide. Instead, look to short-duration bonds of five years or less. Fixed-income ...
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Rising Inflation and Interest Rates: What to Do
(Main Content/blog)
... predicting that higher future prices of goods and services will make bonds' fixed income payments less valuable. Accordingly, bonds are trading at lower prices. Bonds' yields move in the opposite direction ...
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What the Democrats' Win Means for Stocks
(Main Content/blog)
... once the legislative agenda turns to taxes. In part to pay for support to households, small businesses and local governments, Biden wants to raise income taxes on households earning more than $400,000 ...
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Use Tax Planning to Grow Wealth Faster
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... Both steps can save you a bundle in taxes. 2. Use your tax bracket. Pushing income off until next year may help you move down to a tax bracket where the capital-gains-tax rate is as low as 0%. Be sure ...
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Capital Gains Tax Hike a Possibility
(Main Content/blog)
... are taxed at a special rate. For married couples with total income above $80,000 and below $496,600, the current rate is 15%. For couples with income above that level, the rate is 20%. Biden's plan calls ...
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The Coming Corporate Debt Cliff
(Main Content/blog)
... ways to potentially earn growth and income. The opportunities include so-called value companies that are profitable, don't carry heavy debt and are better positioned to navigate an economic slowdown. ...
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Bond Yields Are Low – So Where Do You Find Income?
(Main Content/blog)
It's difficult to find good income opportunities in the bond market right now. The 10-year Treasury, which was yielding more than 3% last fall, is heading into this fall at 1.7%. That's even less than ...
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Time to Invest Smarter
(Main Content/blog)
... firms like PayPal and payment processors Discover and American Express are worth a look. With incomes on the rise, travel and leisure companies, as well as airlines, could also be good bets. There's ...
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Should You Invest in Real Estate?
(Main Content/blog)
... that's amplified by the leverage. Investment real estate also involves two major tax advantages: the ability to deduct all expenses and to depreciate the asset. The result is that the taxable income ...
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The Biggest Mistakes Investors Make
(Main Content/blog)
... a large position and take profits. But that turns to disappointment when they are hit with a big capital gains tax, and when the additional income pushes them into a higher tax bracket. There are ways ...
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The Investment Outlook Is Changing
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... income if you're retired. Furthermore, investors have historically flocked to high-quality companies in times of market uncertainty, which has provided price support for the stocks. If you expect market ...
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Why a Year-End Financial Checkup Is Smart
(Main Content/blog)
... Security taxes to kick in. That's a scenario that's avoidable with a little planning. For example, if your annual combined income from Social Security, pension benefits, IRA distributions, etc. exceeds ...
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Be Smart About Your Tax Windfall
(Main Content/blog)
... so is important. The last thing you want in retirement is to realize that you don't have enough income to support the standard of living that you take for granted right now. Reviewing your retirement plan ...