Plenty of people make a second career as a “solo-preneur” or business consultant. But what if you’ve always wanted to start your own business – one that requires staff? Traditionally, such an enterprise required substantial capital to pay for office space, furniture, equipment, supplies and salaries. But what if you could have all of that without the overhead expense? [Read more…]
Long-term investing through dividend stocks has been a reliable method to help build wealth. If you’re investing with the goal of providing retirement income in the future, dividend stocks offer an interesting option for your equity allocation. These stocks tend to be issued by high-quality companies that are well-established in their industries and appear to be here for the long haul. One caution, though: Dividend stocks are not considered growth securities. They’re all about income growth over the long haul.
In the U.S., interest rates have remained relatively low for about a decade — since the Great Recession. Low rates are a problem for conservative bonds, traditionally a preferred investment for retirees. Because of low income yields, retirees have sought supplementary income from more aggressive holdings. One such security is the dividend stock.
The typical profile for a dividend stock investor is someone seeking income payouts over the long term, with principal preservation and modest growth. [Read more…]
Each week, Jim Byrd and Biff Hamel host a radio show called Safe Investing in the New Economy. They educate listeners with the latest information on retirement planning and investing for a safe, happy retirement. Tune in each week at WABF 1480 AM and FM Talk 106.5 and Fox News Radio 710 WNTM. Also available as a podcast on iTunes and on the website. As usual, this week’s lively conversation revolved around several topics.
Jim and Biff started by answering a question they received from a woman named Martha:
- Q: How do you know you can trust your financial advisor?
- A: That’s a good question! Some of the things you should look for include years of experience and obvious misleading or untrue statements. Be careful and ask for referrals and references. And be sure to get every promise in writing.
Stock Market Volatility and Correction
We’ve been saying this all along: the market seems over-priced and ready for a correction. There is also inflationary pressure which will raise prices on everything. Volatility abounds. Friday Feb. 2, 2018 was the last day for Janet Yellen as the head of the Federal Reserve, who is being replaced by 64-year-old Jerome Powell. The Fed has said they will be raising interest rates this year, after years of extremely low rates.
Five days after this show was recorded, a market correction was in the news:
“The Dow plunged 567 points at the open on Tuesday and briefly sank into correction territory — a drop of 10% from its record high. But those losses quickly vanished, and the index ended the day with a mirror-image gain of 567. It was the Dow’s biggest point increase since August 2015 and the fourth-largest in history. The percentage gain of 2.3% is the biggest since January 2016. The huge swing shows how volatile trading has become in what was once a calm and booming stock market.”
Stock market risk is inherent; it is a gamble not suitable for most people who are at retirement age. And even for those with a higher personal risk tolerance, most peoples’ portfolios are not structured for volatility or as a match to the ideal market portfolio.
Retirement Portfolios- Managed Money vs. Fixed Index Annuities
We offer a variety of investment alternatives. Fixed index annuities are not the only thing we offer, but they are often an important part of a smart retirement portfolio.
Mutual funds are not what they used to be and some major brokerage firms are paring down their offerings. What is replacing them? ETF’s (exchange traded funds) offer better performance and lower prices than mutual funds. If your 401k’s or IRA’s are loaded with mutual funds, it is time to talk to us.
Next steps- Your choice!
- Call us now! Even if it’s after hours, leave a message and we’ll get back to you as soon as we can.
- Our February seminars are coming up! Free educational information you can use about retirement planning and investing. Registration required. Call the office at 251-625-1226 to register for your seat (and dinner on us!) at one of these locations and dates. Or if you like, put your name on an an advanced seating list for future dates.
- February 20, 6:00 pm Briquette’s restaurant in Mobile, AL
- Febuary 22, 6:00 pm, Jesse’s Restaurant in Magnolia Springs, AL
3. If you prefer, call to schedule your complimentary consultation in our office. We encourage you to bring your paperwork and all your questions. We’ll sit down and figure things out together. Once we determine your cash flow needs, we take you through a structured test to determine your risk tolerance, and compare it to your current portfolio. Then we can help you build an investment strategy designed to take care of you and your family in the future.
Between storm damage recovery and pre-existing infrastructure needs, the United States has a lot of rebuilding projects ahead. This means a lot of work for the construction industry, but the bad news is it will cost a lot of money. We believe this makes it unlikely Congress will pass major tax reform by next year. It also gives investors more reason to consider tax-deferred accounts before potential tax reform measures are implemented.
Perhaps you’ve had a similar dilemma with your household budget: How do you cut back expenses when your spending must increase? Tax reform, long touted as a hallmark of the Republican party platform, may be difficult to achieve with all the recent expenses the country has encountered.
When Donald Trump was first elected president, there was positive momentum in the stock market in anticipation of his pro-business, pro-tax reduction policies. These days, however, Congress appears to be looking for ways to pass legislation that looks like tax cuts but would actually help increase short-term revenues.
For example, some House Republicans have suggested rolling back the tax-deferred status of 401(k) plans. 1 This would put the 401(k) on the same level as a Roth IRA, only with higher annual contribution limits ($18,000; or $24,000 for those age 50 and up). While that would result in no taxes on distributions during retirement, investors would pay more taxes on income while working. This may reduce the incentive to save with a 401(k), which is extremely important given the retirement income shortfalls many people are facing. [Read more…]