The Effective Investor Newsletter

What are the potential benefits? What are the drawbacks? The Bush-era tax cuts could sunset in 2013, and that possibility has prompted some traditional IRA owners to think about Roth conversions. If tax rates go up, going Roth may be smart. The key word in that last sentence is “may,” as going Roth may not […]

The benefits of advance retirement planning. You’ve probably been told at least a few times in your life that you should be putting money aside “for a rainy day”, but perhaps it hasn’t yet crossed your mind to begin planning, specifically, for your future retirement. If you think it’s too early, or if you feel

Easing into a difficult conversation. Every eighth American aged 65 and older has Alzheimer’s disease, and 43% of Americans aged 85 and older have it, according to the Alzheimer’s Association. Consider those percentages in light of the Social Security Administration’s estimate that about 25% of today’s 65-year-olds will live past age 90. These shocking statistics

These are the dates (and deadlines) too often forgotten. IRAs come with complex rules and regulations. As these rules and regulations are occasionally forgotten or misinterpreted by IRA owners, here is a refresher. Age 70½: Required Minimum Distributions (RMDs). Once you reach age 70½, you are required to make withdrawals from any traditional (“regular”) IRAs

Specialized trusts & private loans can help address some “what ifs”. Estate planning professionals have to deal with ambiguities today. Constant tax law revisions aside, there are contingencies of family life that may require added flexibility in estate planning. Fortunately, there are tools that can help to arrange it. Standby trusts. As the name implies,

Does the old stock market cliché have any credibility in 2012? An old stock market dictum says that spring is for profit-taking, or at least a time to reduce your exposure to equities. In the classic market psychology, you “sell in May and go away” with the belief that stock prices will plateau or retreat

Investing timidly may shield you against risk … but not against inflation. When is being risk-averse too risky for the sake of your retirement? After you conclude your career or sell your company, you have a right to be financially cautious. At the same time, you can risk being a little too cautious – some retirees invest so

What do you do if your portfolio isn’t generating a decent return? Do you wish you had more money these days? You aren’t alone. Many retirees find that their income streams are insufficient. Right now, interest rates are at rock bottom – and it appears they will stay there for the near future. With the

Steps to see that financial matters remain in good order. When a spouse passes away, the emotion and magnitude of the loss can send our lives reeling. This profound change can also affect our finances. All at once, we have a to-do list before us, and the responsibility of it can make us feel pressured.

The market has rebounded … is it poised to keep rising? Remember when people were getting out of stocks? In the last quarter of 2008 and the first quarter of 2009, some people made the decision to move money into forms of investment with low or no stock market correlation. The recession was going full