When it comes to preparing for retirement, smart investing is a crucial factor that can greatly impact your financial security and overall quality of life during your golden years.
The 401 (k) retirement savings plan has long been hailed as a cornerstone of financial security for employees, offering tax advantages and employer-matched contributions. However, it also offers a tempting option for individuals facing financial challenges – the ability to borrow from their 401(k) account. While this may seem like a convenient…
Stocks arguably defied expectations in the first half of the year. Major stock market indices made significant gains due to improving inflation, slowing Fed rate hikes, the absence of a recession, a more stable banking sector and a strong rally in tech stocks.
The second quarter of 2022 has been challenging, to say the least, for investors as markets responded negatively to shifting interest rates, supply chain snarls, inflationary pressures and geopolitical challenges.
The concern among stock investors is that rising prices, and subsequent actions by the Federal Reserve, will cause a significant slowing of economic growth and potentially a recession.
There is no better way to describe it – 2021 was a historic year for the markets. After more than a decade of inflation running below the Federal Reserve’s stated 2% target level, the trifecta of rising wages, supply-chain disruptions for many goods and trillions of dollars of government largesse combined to push inflation steadily higher as the year progressed.
As the pandemic appeared to be slowing down, the new highly contagious COVID-19 Delta variant flared this summer causing a momentum slowdown in the third quarter dampening investor enthusiasm. The list of additional concerns included higher inflation, rising interest rates, lofty equity valuations, supply-chain bottlenecks, Federal Reserve policy changes and the chaos in Washington over President Biden’s two massive stimulus proposals and changes to the tax code to pay for them.
Hard to believe but we’ve made it to the midpoint of the year already! When reflecting on the markets during the first half of 2021, it is important to understand both where we are and where we were at this point last year.
We have all endured the COVID-19 pandemic for over a year now, and the one-year return data is beginning to reflect the significant come back we have witnessed in the stock market. It appears fiscal policy has effectively bridged the income gap between massive job loss in the services sectors and the broad vaccine distribution that has hastened the reopening of the economy.
U.S. stocks turned in a second consecutive quarter of dramatic gains, continuing a historic stock market recovery that few predicted in the depths of the March downturn. The S&P and Nasdaq Composite scored a string of records in the third quarter which has confounded many investors with its sheer velocity and strength.
When this quarter began, the stock market was just beginning to pick itself up from one of the worst
and quickest declines in history. The 34% decline from February 19 to March 23 this year was an
indication of just how weak the economy would be in the second quarter.
In response to the COVID-19 pandemic, Congress passed the CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT (CARES Act) on March 27, 2020. The bill provides financial aid for individuals and companies. The CARES Act also has provisions allowing access to retirement savings and suspension of required minimum distributions.
The year 2019 began with a strong rally in the stock market and ended in the same impressive manner. Gains were realized across the board as all major asset classes fully participated in this rally making it one of the best years in a great decade for the financial markets. Annual stock returns around 30% erased the memory of a difficult fourth quarter 2018.
A Roth conversion is advantageous if you have a large traditional IRA account, and you expect your future tax bills to either grow or remain at the same level at the time you plan to start withdrawing from your tax-advantaged account.
Tax-advantaged plans such as 401(k)s and college savings plans are everywhere these days, but less well-known are Health Savings Accounts (HSAs) despite the many advantages they offer. In addition, the study also reveals that women have been having fewer children during these past five or six decades. What that means to Baby Boomers (those individuals born between 1946 and 1964) in or near retirement is a potentially smaller support system to help with life guidance and basic care.
During the past half century, the number of married couples in the U.S. has been steady declining. According to a study published in The Gerontologist, approximately one-third of Americans between the ages of 45-63 are currently single. Most of these have never been married, although many were once married but are now divorced.
In addition, the study also reveals that women have been having fewer children during these past five or six decades. What that means to Baby Boomers (those individuals born between 1946 and 1964) in or near retirement is a potentially smaller support system to help with life guidance and basic care.
The trade conflict with the U.S. is starting to impact China’s economic growth. An added element of pressure is the uncertainty around the economic impact of the protests in Hong Kong and more importantly, the Chinese government’s response.
The Pew Research Center estimates that 10,000 baby boomers are expected to turn age 65 each day from now until 2030. If you count yourself among this group—whether you plan on retiring next month or more than a decade down the road—consider these six recommendations to help you prepare for this next stage of your life…
Everyone in America needs to save for retirement. At Pension Parameters, we help businesses and individuals create and find the most efficient and affordable retirement solutions now, which will sustain them later, when most needed.
Pension Parameters has an unmatched track record delivering its clients confidently into successful retirement through personal service.
With offices in New York City and New Jersey, Pension Parameters serves its clients throughout the country — from individuals to companies with up to 500 employees.