About 9,000 taxpayers have more than $5 million each in their individual retirement accounts, according to a recent report by the Governmental Accounting Office. The Governmental Accounting Office report is found here: Click here to read From our experience these IRA owners are similar to the stereotypical “Millionaire Next Door”—self-made, first-generation accomplished individuals who lead
What drives market volatility? Professor Robert Shiller of Yale contrasts the narrative of recent volatility with volatility in 2011. Skyrocketing volatility of the last several weeks, although painful, is normal and can be healthy, according to the analysts at Charles Schwab. In the final article, Mark Miller of Reuters analyzes recent social security inflation adjustments
Calm has returned to markets after several unnerving weeks. The “fear index” has dropped to a calm reading after spiking to its highest reading since 2011. Lessons were learned. The consumer is unshaken. Panic Defused in Stocks with Sharpest VIX Drop Since 2009. The panic has subsided. The Chicago Board of Options Exchange (CBOE) Volatility
Investors have been contending with two trends in the sell-off of recent weeks: anxiety over a change in Fed policy and evidence of a slowdown in the global economy. A strong U.S. economy continues to suggest increases in interest rates in the first half of 2015. At the same time, the rest of the world
This time of year we take a hard look at portfolios to help mitigate the tax drag on investment performance. “Taxes are a big cost—perhaps the biggest for high-earners—but are also among the least thought about,” according to a Morningstar analyst. Not everything that can be counted counts, Albert Einstein famously said. This is so
Am I on track? That question is posed to us quite often by individuals making general inquiries. Underlying issues usually are “Do I have enough to retire comfortably?” or “Do I risk running out of money?” This week’s blog addresses aspects of these underlying questions. In general, two main approaches are used in retirement planning
Last week we presented the views of three commentators and summed it up by saying “It’s Time to Play Defense.” That generated more responses than usual, so this week, we drill a little deeper by asking “How do you play defense in the current market environment?” More from Howard Marks. “It seems most people in
As football season is upon us it is appropriate to borrow a sports metaphor and suggest it is time to play defense. At least that is what several thoughtful commentators suggest. Risk Revisited. “Memos from the Chairman”—penned by Howard Marks of Oaktree Capital—never fail to deliver thoughtful commentary. His latest memo cautions that investor behavior
Achieving sustainable economic growth in the wake of the financial crisis has been long in coming. Optimistic expectations have been revised repeatedly. Now, it appears recovery finally is gaining a foothold and can be sustained for a while. The U.S. recovery looks sustainable this time. A genuine improvement in U.S. economic conditions seems to have
The Napa earthquake reminded us this week of our restless earth, about the unpredictability of external shocks to the market, and how we don’t need to be lulled to sleep when volatility is relatively low. Three Investing Lessons from the Napa Earthquake. Stocks and other risky assets have been doing particularly well the last few