It will be a busy week for the markets. Hundreds of companies will be releasing third quarter earning’s reports. Continued favorable news from Washington on tax reform is anticipated. On Friday, the preliminary report on third quarter Gross Domestic Product will be released. Short term interest rates have been on the rise as can be […]
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Retirement Readiness
DEAR TRUST OFFICER: How much money must I have in order to be able to retire? Is $1 million enough? — PEAK EARNING YEARS DEAR PEAK: The better question is: How much income will you need during your retirement? If you will have a pension and Social Security checks coming in, $1 million might easily be […]
Read MoreBehavioral Economics
Earlier this month, psychologist and economist Richard Thaler was awarded the 2017 Nobel Prize in economics for his work in the field of behavioral economics. The study of the psychology of economics is of questionable value in the minds of many traditional economists. Economists have long struggled to have their field of study accepted as […]
Read MoreEmotional Investing
We like to think that since the advent of modern portfolio management practices, investing in stocks and bonds has become a cerebral, analytical process with no room for emotion. The truth is that most investors, even institutional investors, are buffeted by emotional turbulence from time to time, and that truth is reflected in the volatility […]
Read MoreReview Your IRA Beneficiary
Sometimes mistakes in an estate plan can be repaired after death. Sometimes not. Charles Sukenik executed his will on November 4, 2004. His estate was to be divided between his surviving spouse, Vivian, and the couple’s private foundation. His revocable trust was restated at the same time, giving Vivian certain real property and the balance […]
Read MoreIRAs for charity
Charitable giving in the U.S. rose 2.7% last year, reaching an all-time record of $390.05 billion. That’s also a record in inflation-adjusted dollars, reports the Giving USA Foundation in its annual report on philanthropy. Individuals, foundations, and corporations contributed to the robust growth in philanthropy, while bequests were projected to have declined by 9.0%. Some […]
Read MoreFourth Quarter Expectations versus Lifetime Expectations
September is on track to beat the averages this year. As we begin the final week of the month and quarter, the S&P 500 is up 1.24% month to date and 3.25% quarter to date. Year to date, the price return of the S&P 500 stands at 11.76% as of Friday’s close. This is quite […]
Read MoreYou can’t do that with an IRA
Terry Ellis decided that his next job would be selling used cars. To that end, he formed a limited liability company (LLC), which was to be 98% owned by his IRA. The other 2% would be owned by an unrelated third party working for the LLC. Ellis was designated as the general manager of the […]
Read MorePast Performance is no Guarantee
Last week began with a Monday rally of 1.08%, the best one day gain since April 24th, and a new high close for the S&P 500. The index added another 12+ points during the rest of the week and closed at a record high of 2,500.23. The last 5% or greater correction in the index […]
Read MoreEstate planning for the married
DEAR TRUST OFFICER: Most married couples will never need to worry about filing a federal estate tax return, will they? I’ve heard that for couples the federal estate tax exemption is over $10 million. — AFFLUENT, NOT WEALTHY DEAR AFFLUENT: On the contrary, in the vast majority of cases of an estate with a surviving […]
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