Archive - February 2013

1
How Do Guns Make The Grade In A Portfolio?
2
Should You Delay Taking Social Security?
3
IRAs And Medicaid
4
Bond Laddering: Generating Income From Your Portfolio
5
Time For High Dividend Paying Stocks? Not So Fast

How Do Guns Make The Grade In A Portfolio?

Question from a reader: Recently I’ve read reports that the both the California and Chicago teachers pension funds are either reviewing or selling investments in guns. What do you make of it?

The trustees in these cases are walking a fine line. If they decide to divest of all gun manufacturers, they are eliminating a market sector, and research shows that hurts investment returns.

Divesting in entire market sectors was the approach back with the socially responsible investment (SRI) movement started. Funds that follow the strategy are called “Excluders” because they are excluding investments based on their market sector.

The

Read More

Should You Delay Taking Social Security?

While taking withdrawals from your portfolio to cover your expenses while you maximize your Social Security payments is an attractive alternative to purchasing an income annuity from an insurance company, I wouldn’t recommend such action to everyone. The media is currently buzzing about how you should delay taking Social Security until age 70 in order to maximize your monthly benefit. Let’s examine a fairly typical retiree and determine if it pays to postpone receiving Social Security checks.

Let’s assume our retiree is age 62 and would receive $2,000 per month in Social Security if she waits until full retirement age …

Read More

IRAs And Medicaid

When it comes to IRAs and Medicaid eligibility the question that gets asked is, “How does my IRA affect my eligibility for Medicaid?”

Many states share similar guidelines when it comes to exempt and non-exempt assets in IRAs. Essentially, it boils down to this: if the IRA is not in payout status (the IRA owner is not taking required minimum distributions) then the assets in the IRA are included (non-exempt) in the determination of eligibility. However, if the IRA is in payout status and the owner is now taking required minimum distributions (RMDs) the total amount of the IRA is …

Read More

Bond Laddering: Generating Income From Your Portfolio

For many retired investors, a key objective of portfolio management is creating a stable stream of income while preserving investment principal. Bond laddering is a strategy that may address both aspects of this need.

What Is Laddering?

A bond ladder is a portfolio of bonds with maturity dates that are evenly staggered so that a constant proportion of the bonds can be redeemed at par value each year. Many retirees construct bond ladders with a specific end point that is based on the amount of time they want the bond ladder to generate income. Laddering for a fixed term can …

Read More

Time For High Dividend Paying Stocks? Not So Fast

Thanks to the Federal Reserve’s commitment to ultra low interest rates, bond yields are now near historic lows. While some investors might be tempted to consider dividend-paying stocks as a way of generating income, before you decide to jump on that bandwagon there are three key points you need to reason through first:

1. DO THE MATH

When a company pays out a dividend, the stock price decreases on the ex-dividend date by an amount roughly equal to the dividend paid. For example, let’s say you are an investor holding 100 shares of a stock priced at $100 per share …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login