March 6, 2009, was a terrible day for stock market investors. The Dow Jones Industrial Average (DJIA) closed at 6,626.94, and the S&P 500 closed at 683.38. Both indices showed losses of nearly 60 percent from their peak value only six months prior. With the financial crisis in full swing, there were many financial experts who thought we were about to enter a new Great Depression with people better off saving gold bars under their mattresses instead of investing in the markets. How … [Read more...]
Ready to Retire? 3 Creative Exit Strategies
Don't expect a white knight to arrive when you're ready to sell your company. Consider your options now, or risk a bumpy retirement. No one lives forever, and eventually you decide it's time to retire. To make this life-changing plan a reality, you need a viable exit strategy. Many business owners are under the impression that when they're ready to sell, there will be plenty of cash-rich buyers knocking on the door. Yet crossing your fingers and praying for a white knight rarely works; you need … [Read more...]
Vanguard Group Founder John Bogle Believes We Are Headed for a Massive Financial Disaster
The U.S. is headed for a retirement crisis which could wipe out the dreams of most workers and business people. And John bogle Believes we are headed for a massive financial disaster. John Bogle founded The Vanguard Group in the 1970s and built it into the second largest mutual fund company in the world with current assets of $2 trillion. Bogle is also largely responsible for making Index Funds available to small investors. When it comes to providing an expert opinion on investing for … [Read more...]
Will Californians Be Hit With a New Billions Tax?
A move by a state pension fund to make up for a shortfall has implications for residents and all small-business owners. Will Californians Be Hit With a New Billions Tax? The California Public Employees’ Retirement System (CALPERS) is the pension fund for the state’s municipal workers. It is one of the largest pension funds in the world, with over $250 billion under management, and it has great influence across other pensions in the country. CALPERS, like many other state pensions and just like … [Read more...]
How to Pull Cash Out of Your Retirement Accounts
How to Pull Cash Out of Your Retirement is just as important as putting money in. Here's why. Most small-business owners look forward to the day when they no longer have to work and can retire (or semi-retire) knowing that they have sufficient assets to provide a comfortable retirement. Having sizeable investments is only part of the equation; you also need to ensure that these investments can be converted to cash in a way that minimizes taxes and penalties. Christine Benz, director of … [Read more...]
Do Wealthy Business Owners Need Long-term Care Insurance?
Even if your filthy rich, long-term care insurance may be the best way to make sure you have a good quality of life when you're old. A long-term care insurance (LTCI) policy is an important financial planning tool. It helps cover the costs incurred by policyholders who can no longer take care of themselves due to illness, injury or old age. The policies usually protect the insured for expense that traditional health insurance, including Medicare, may not cover as well for periods of time that … [Read more...]
Is Dollar Cost Averaging The Best Way To Buy Stocks?
Dollar cost averaging may not be the most efficient, but its the best way to buy stocks Small-business owners who don’t have all of their wealth tied up in their businesses usually prefer to take an active role managing their own investments. Over the long-term, prudent equity (stock) investments provide solid returns that beat inflation and other investment alternatives. When it comes to actually buying the shares, significant research has shown that the most efficient way is to buy them in … [Read more...]
Retirement Account Contribution Limits Rise in 2013
Finance expert Mike Periu on the new Retirement Account Contribution amounts set by the IRS for retirement accounts like IRAs and 401(k) plans. December 26, 2012 The Internal Revenue Service announced the annual cost of living adjustments for retirement plan contributions for 2013. Every year the IRS increases the amount you can contribute to retirement accounts to compensate for the ever-rising cost of goods and services to ensure that you are saving enough for retirement: 401(k) plans The … [Read more...]
Delaying Annuity Payments Significantly Increases Earnings
Finance expert Mike Periu on how delaying annuity payments, even by just one year, can significantly increase your income during retirement. A key concern for many small-business owners is running out of money during retirement. The Society of Actuaries, the Urban Institute and the Women’s Institute for a Secure Retirement undertook a study that analyzed this issue. The study shows that making a few key decisions in time can help prevent the nightmare of running out of money when you can no … [Read more...]
retirement savings as financial goal
According to a recent study by T. Rowe Price, over 70 percent of investors aged 21 to 50 list retirement savings as their numer one financial goal Retirement Concerns Not Translating into Good Decisions According to a recent study by T. Rowe Price, over 70 percent of investors aged 21 to 50 list retirement savings as their number one financial goal. But when compared to how they actually spend their money, there is a clear mismatch between what they say is their goal and how they actually … [Read more...]