When you determine your retirement income needs, you make your projections based on the type of lifestyle you plan to have and the desired timing of your retirement. However, you may find that reality is not in sync with your projections, and it looks like your retirement income will be insufficient to meet your estimated expenses during retirement. This is called a projected income shortfall.
Whether you inherited a large holding, exercised options to buy your company's stock, sold a private business, hold restricted stock, or have benefitted from repeated stock splits over the years, having a large position in a single stock carries unique challenges. Even if the stock has done well, you may want more diversification, or have new financial goals that require a shift in strategy.
It is only wise to consider what Medicare won’t cover in the future.
After years of keeping the benchmark federal funds rate at historic lows, the Federal Reserve has been raising it gradually. Controlling the interest rate is one way the FOMC attempts to control inflation and economic growth. The near-zero rates were an emergency measure, and gradual increases reflect greater confidence in the U.S. economy. However, rising rates can affect you as a consumer and investor.
As value investors we believe in finding value in every place possible. Therefore, one of our 8-tenets, we look for funds that have a low expense ratio when compared to your peers. We believe that that a higher expense ratio does not necessarily mean higher performance, and instead reduces the return on investment. While you may assume that higher expense ratio MUST mean you’re paying for better performance, but this is actually not true. In this paper we will look at a few examples that indicate funds with high expense ratios should be avoided for cheaper alternatives, if possible.
The yield curve between the two-year Treasury and five-year Treasury inverted on Tuesday (12/4), rattling investors, as it is seen as signal that a recession is coming. The true “harbinger” of a recession, the inversion between the two-year and 10-year, hasn’t happened yet but the margin between the yields has narrowed significantly. Why does this matter? Let’s start out by understanding the yield curve.