What I Read This Week
- The Best and the Worst of 401k Plan Design Elements. Most of the elements discussed are likely to not be a surprise—offering a Roth option is generally a good idea; too many investment choices is generally a bad idea, and so forth. I found the category-based, tiered investment choices to be an interesting concept but have yet to hear sponsors express concerns about retirement readiness—at least by that name.
- Class of 2015 can’t retire till they’re 75. Once one gets past the grammar issue (should be “it’s” not “they’re”), this article cites three factors that’ll keep millennials working for longer: high student loan debt; rising rents; and the impact of the financial crisis on their saving/investing habits.
- How To Avoid Year-End RMD Errors. This article highlights six possible errors in taking Required Minimum Distributions from retirement accounts. Here’s number five: if one is still working at age 70.5, he or she does not have to take a distribution from the employer’s plan, but must take a distribution from any IRA(s) and other company plans.
- IRS Announces 2016 Tax Rates, Exemptions; Boosts LTC Deductions. A real snoozer of an article.
- A chef, a sugar tax, and an epidemic of obesity. While I am normally not a fan of taxes, I prefer the type that are voluntary, or levied based on one’s actions. This article talks about Jamie Oliver’s campaign in England to get a tax instituted on food products that lead to obesity. Ostensibly, the tax revenues could then be used to mitigate the the financial impacts of obesity.
- The Smart Money Has Never Been This Long the Long Bond. There are a couple of concepts in the futures pits: smart money and the dumb money. Historically, the dumb money has been wrong at turning points, while the smart money has been right at turning points. Currently, the smart money in the long bond contract is more net long than they’ve ever been. Thearticle suggest the long bond yield could have a 1 in front of it in the future.
Graig P. Stettner, CFA, CMT
Financial Advisor & Partner
Strategence Capital
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Some references within the article are incomplete and oversimplified. Investing involves risk and no strategy protects against loss.
Withdrawals from a Roth IRA may be tax free, as long as they are made prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later.
Investing in mutual funds involves risk, including possible loss of principal.
Long positions may decline as short positions rise, thereby accelerating potential losses to the investor. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.