If there's one investment vehicle that causes more controversy than any other, it has to be the annuity. Opinions among financial professionals are usually divided along the lines of compensation model. Commission-based brokers and insurance salespeople tend to think more highly of them, and to recommend them more frequently, than Fee-Only financial planners.
If there is a Rodney Dangerfield of investments, it has to be Treasury Bonds. They always yield less than other taxable fixed-income investments with the same maturity, they don't get the airtime afforded stocks, and they don't have the mysterious allure of alternative investments. But in times of crisis, when other investments are withering under the pressure, Treasury Bonds usually step into the breach to provide a diversified portfolio with capital gains when they're needed most.
In the prior posting in our series, Articles on Wealth Management Topics, we discussed the basics of the Roth 401(k) plans that many employers have introduced in recent years. But are these plans right for you, or should you stick to contributing to the traditional 401(k)? Let's talk about some of the circumstances that would make Roth 401(k) contributions more attractive.
Now that Roth 401(k) plans have become a permanent fixture, more companies are beginning to offer this option to employees. With that in mind, let's take a look at the major features of this relatively new type of retirement plan.
One of the most widespread misconceptions or overlooked opportunities in retirement planning concerns contributions to IRAs.
In other Articles on Wealth Management Topics, we've discussed the confusion that many consumers of financial services have regarding terminology such as "fiduciary". Another misconception that many people (including related professionals) struggle with is the difference between Fee-Only and fee-based financial advice.
Pension or "defined benefit" plans are in a state of decline in more ways than one. Thousands of pension plans have been terminated in recent years. The vast majority of them were fully funded, but were frozen by healthy companies, like IBM, Verizon and Hewlett Packard, looking to save money.
Education is an ongoing hot-button issue in Utah. One aspect of education funding that we should be able to come together on, however, is that we are lucky to have one of the best 529 plans in the country here in the Beehive state.
Stock markets can be characterized as being both consistently positive and eerily quiet in recent months. Volatility and trading volumes continue to be extremely subdued, but stock indices just keep grinding higher. A few factoids to underscore these points -
Under the Federal financial aid formula, financial aid is reduced 35 cents for every dollar of student assets, but only 5.6 cents for every dollar of parental assets. In this regard, UGMA and UTMA accounts, considered an asset of the student, are less attractive as college funding vehicles than parental 529 accounts.