Investors are often faced with emotions caused by swings in the stock market, as exemplified by this year's heightened market volatility. However, emotions can also come into play when dealing with personal financial decisions at home, such as how much to spend when we shop, savings contributions, charitable contributions and the like.
A recent study by the National Bureau of Economic Research indicates that a key component of investment success over the long-term is financial knowledge, as outlined recently in CNN Money.
A common retirement rule of thumb that we have written about in our blog in the past is the 4% rule for withdrawals from savings in retirement. A recent Market Watch article discusses the potential that this rule is inadequate for many investors.
Clients often approach us with questions regarding how much they should save for retirement. A good rule of thumb is to save approximately 10-15% of your pre-tax income for retirement, particularly for a younger individual, and perhaps more if getting a late start on retirement saving. Many investors do not realize that the impact of saving just a little bit more each month can be profound.
We recently came upon the article below in one of our financial resources that describes three important pre-retirement elements for leading a healthy retirement:
A recent survey by the American Psychological Association found that 72% of Americans were stressed about money within the past month, according to a recent article on the CNN Money website.
Last week, we wrote about the White House’s proposal to tax withdrawals from 529 plans, even if they are used for qualified education expenses. Facing pressure from politicians on both sides of the aisle, the White House abruptly withdrew the proposal this week.
President Obama recently proposed a change to 529 plan accounts that could have a significant effect on college savers. Under current law, amounts invested in a 529 plan account grow tax free and withdrawals also are not taxed as long as they are used for qualified higher education expenses.
This week, we distributed our latest quarterly market commentary, including a review of the markets in 2014 and our outlook for the markets in 2015. In short, we expect another year of solid returns from equity markets in 2015, as the combination of U.S. economic and corporate earnings growth, low interest rates, and accommodative central banks will support equity prices.